Single-Member LLC

An IRA-owned single-member LLC refers to a unique investment platform where an account holder will open a checking account in the name of a single-member limited liability company (LLC) and use that account to invest retirement funds. While this enables the account holder to have immediate access to IRA funds, has limited liability from claims and may save on transaction and check fees, the account holder remains subject to all IRA rules and regulations.

While Kingdom Trust does not offer single-member LLCs, we do allow single-member LLCs in accounts under certain circumstances. The account holder is responsible for the creation of the LLC and its supporting documentation and for finding a manager to manage the LLC.

Learn more about our requirements for IRA-owned LLCs.

Using a single-member LLC within your Self-Directed IRA might make investing simpler and save on administrative costs, but it is also more complex.

The IRS has made it clear to their examiners that single-member LLC structures are ripe for abuse and may be the source of code violations and prohibited transactions and have encouraged their examiners to look at them where they find them.

With control comes responsibility. Kingdom Trust does not provide investment, legal or tax advice, so an investor looking to structure his or her IRA in this fashion should do the proper research and employ the services of a tax or legal professional well versed in single-member LLCs inside an IRA. Structured correctly, though, the IRA-owned LLC can be a viable investment structure for a Self-Directed IRA.

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