In June of 2015 I went thru the whole process of setting up an LLC with an IRA with Checkbook IRA, which at the time seemed legit. Those jack rabbits charged me $1100 to get it all set up, then I had to pay $125 to renew the LLC each year and $125 to Kingdom Trust to keep the IRA going. Every time I sent a deposit to my IRA then also charged me a $25 processing fee. It turned out that I never ended up using either the LLC or that IRA, and later found out I could start an LLC for as little as $75. I closed it all out this past year with no benefit from doing it.
Hi @Douglas Allen Mundy ,
One option is to work with a trust company that offers quick turn arounds. Quick turn arounds eliminate the need and benefits of a so called "checkbook IRA." You just need your Self-Directed IRA and an IRA Custodian that can provide quick transaction processing.
I'm sorry to hear about your situation! I agree with Bill here. So many times I hear people/custodians saying they have to set up a checkbook IRA, when usually it isn't even needed in order to achieve your investing goal. Often times, a lot of necessary information can be left out during the setup, too, which can cause problems in the long run. I think - like Bill said, - working with a trust company that offers quick turn around and funding times so that you don't even have the need to posses the checkbook (also a good option to ensure you're being extra careful following prohibited transaction rules) is gonna be what makes or breaks your experience. There are some custodians out there that can process requests within 24-48 hours, and even same day sometimes! I know you said you closed that all out this past year after seeing no benefit from doing it, but if you ever consider self-directed IRA investing again, those would be my suggestions! I've been investing with my SDIRA for about 4 years know as a passive investor and have never had the need to set up an LLC. Good luck!