A Special Purpose LLC is set up to accomplish a specific purpose by limiting the persons involved or actions taken by the LLC. This type of LLC is frequently used in connection with self-directed IRA investing for several reasons:
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Better investment (aka Checkbook) control
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Faster buying and selling
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Asset protection
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Limited custodial fees
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Better asset management when there are multiple assets
What makes this LLC “Special” is its operating agreement. Since the LLC will be making the actual investments, the operating agreement must be customized to account for retirement funds. Establishing such an agreement expressly states the LLCs intent to comply with the special rules for retirement plan investing.
Special Purpose LLC Structure
- Traditional Escrow
- LLC takes title and owns property (has check writing capabilities)
- Owner manages the LLC
Let us help you decide whether a Special Purpose LLC is the best investment vehicle. While there are additional front-end and on-going expenses associated with an LLC, they afford several advantages that make them worthwhile under the right circumstances. We will take the time to discuss and understand your plans and goals. If you decide the Special Purpose LLC is the right fit, we will refer you to a knowledgeable attorney to form the LLC and get you started on taking full control of your retirement investing.
