Updated over 14 years ago on .
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Expectations when your custodian is not registered as a "foreign" corporation in your state
In my first SDIRA investment several months ago, I ran into several "problems" (or details may be a better word) that I guess are just part of my SDIRA investment "maturity". In the Where does a SDIRA live? post, the question comes up about specific geographic issues with SDIRA investing. I ran into related, but different, issues regarding the location and 'viability' of my custodian. For instance, I tried to get utilities started for the single family residence that my SDIRA purchased... but since the custodian company is not registered as a foreign corporation with the secretary of state, I could not register utilities in the name of the custodian. Utility companies here verify that the entity who is going to pay the bill is "legal" WRT the secretary of state. Not registered? No water. Interestingly, closing attorneys allow deeded transfers to and from entities that are not registered. HUD, Fannie Mae, Equity Trust, Guidant... none are registered. That doesn't mean the transfers are not legitimate.
Just one case where it is easy to see that the SDIRA is not you.
I would be curious to see what other similar cases come up with BP members when using SDIRA funds for various investments.