Hi BP community - Has anyone done the legwork of establishing their own single member LLC for their self-directed IRA? My CPA/attorney can do it for me of course but wants $3500 to do it, which is typical for CA. I've used him one before for an LLC but realize there's a lot of boilerplate and window dressing in that cost (fancy certificates, embossed stamp, etc.). I'm trying to weigh not just the potential savings in dollars but the value of risk mitigation and having him in the loop since he also does my taxes and estate planning.
That sounds overpriced for an IRA LLC.
In my view, the value is in the professional or the firm being there if the IRS performs a compliance check.
Thanks George. Great post on set up process, too!
IRA LLC is not a DIY project, you should use a professional who can set this up correctly. I agree with George that price you were quoted is in the high end of spectrum. There are several of us here on BiggerPockets who provide this service, select couple people who provide quality service (do your research), check references and speak about your particular situation. Then you can make a selection.
In case anyone comes across this thread, I overlooked the obvious answer: in an SD IRA, you're not allowed to perform any services yourself for your IRA as this is construed by the IRS in a manner that would invalidate the IRA's tax status and open you to significant tax penalties. So, you must hire a third party (e.g., attorney) and pay them from your IRA funds.