Hi BP community!
So, here is the question and I hope I do not lose or confuse anyone.
I am currently using my check controlled SDIRA LLC to partner and invest with another persons check controlled SDIRA LLC. in a project/business.
With that being said me and that individual would like to start another different and separate project using our other regular LLC's as partners in this separate project.
When we had spoke about starting a new separate venture with our regular LLCs. Someone had said that we were not allowed to partner on anything else because we had already established a partnership with our SDIRA LLC. in the other business already. It would cause red flags or something like that to IRS. I have tried to talk to my CPA about it but they hardly even understand SDIRA LLCs as it is. (time for a new CPA and I am currently looking). So I have very little luck to finding the correct answer.
I apologize in advance if this didnt make sense. And I am more than happy to try to explain it better if it didnt. I am just trying to get some clarification on if i can continue on partnering with my regular LLC with that same person.
As long as those investments are completely separate and you are personally not receiving any benefit from your IRA directly (or indirectly) you should be able to partner with this person. I suggest you discuss and confirm this transaction with the professional who established an IRA LLC for you.
Thank you so much for your response.
Sadly, I also asked the company in which I had set up my SDIRA plan with and they didnt know how to answer that question. just told me to talk to my CPA or consult a tax attorney.
But yes I figured that as well because we would be using entirely different LLCs to be partners with this project/business.
It was just said that the IRS would raise flags on us because we are already partnered with our SDIRA LLC in another business.
@Moses Lucero , the transaction would be disallowed if somehow it was dependent on the transaction involving your IRA. You must remember that you are considered to be "disqualified person" to your IRA, hence all IRA transactions must be "arms length". That is why you should work closely together with qualified professional who can review all of the details and provide you with the proper guidance.
Yeah the 2nd business is entirely separate from the 1st business that is currently invested with our SDIRA. So anything in the 1st business is ONLY going through and from our SDIRA LLC. The second business is ONLY going through and from our regular LLCs. We want to keep it as separate as possible between the two ventures so there is no confusion or benefit from either company. the only thing in common is us as individuals partnering in other businesses together. My problem is that someone rained on our parade about the 2nd business saying we could not be partners in any shape or form in any other business because we are already partners with our SDIRA in the 1st business.
again thank you!
@Moses Lucero I *think* you are fine, but I am not an expert, just a fellow SDIRA investor :-)
When we set up our 3 way LLC which all members are Checkbook Controlled SDIRAs or SOLO401Ks, we specifically checked on this as we ARE involved in a couple of other businesses together which like you have NOTHING to do with the 3 way LLC.
There are at least a few Retirement Fund Lawyers on here. I did not know of them at the time and used a man named Jarom at https://kkoslawyers.com/ who specializes in this type of stuff and had good luck. You'll pay some up front but have good peace of mind too.
Thank you for your input.
Funny you mention them. I am actually attending their event in Irvine CA next weekend. I am positive they would know. But just looking for a quicker answer.
Not a problem in my opinion. Assuming it's not a disqualified person, your SDIRA LLC can partner with any LLC, doesn't matter if the other LLC is also a SDIRA LLC or not.