Opening a Check book IRA, with the LLC in Wyoming?

Question

i wanted to open a checkbook IRA with the LLC in Wyoming, how do I go about doing that? Also wanted to know who would be a low cost provider?

George Blower · Answer

@Michael Prakash

Have you looked into the solo 401k trust as it can also be invested in alternative investments which is ideal for CA residents?

Justin Windham · Answer

@Michael Prakash

I'd also recommend considering the Solo 401k if you are eligible. You must have some self-employment activity and no full time employees to qualify.

If so, you could get access to many benefits over an IRA LLC. Contributions limits are roughly 10x higher, there is no custodial requirement for the 401k, you can take participant loans, you don't need the additional expense and administration of an LLC to have checkbook control, there is a built in-Roth component, a spouse can participate, there are additional tax benefits, there is generally greater privacy, and the plans are often quicker to setup and cost less money over time compared to most IRA LLCs.

Bernard Reisz · Answer

@Michael Prakash the CA annual minimum tax on LLCs is not easily avoided. As @George Blower suggested a Solo 401k is a better option, for those that qualify.

Brian Eastman · Answer

@Michael Prakash

What will the investment activities be and will they be in Wyoming?  If you are creating a business nexus in another state, you will want to have registration in that state to be compliant with state law and have access to the courts of the state.  Being a California resident, any LLC could create exposure to the California Business Franchise Tax.

You can certainly find a low cost IRA LLC provider who will just setup a Wyoming LLC for you, but is that going to be the best solution?  My guess is probably no.  You want to work with someone who is capable of providing meaningful guidance and an evaluation of your situation and goals.

There are several quality providers of IRA LLC programs as well as some "document mills" that you can find on the internet and here on BP.  Do your research and speak with several providers.  It will become apparent who knows what they are doing.

Opening a Check book IRA, with the LLC in Wyoming?

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