Because the LLC is the owner of the investment, all income and expenses can go through the business checking account.
FAQ Category: IRA LLCs
Can I take distributions directly from the LLC’s business bank account?
No. That would be considered a prohibited transaction.
Can I invest in real estate through a Limited Partnership (LP) or Limited Liability Company (LLC) with my IRA account?
Yes. Please contact customer service at Digital Trust for information on the procedure to purchase real estate through a corporate entity such as an LP or LLC.
Can my qualified account invest in an LLC or LP that I or a disqualified person owns?
If your qualified account invests in an LLC or LP that you or a disqualified person owns or controls, the investment could be a prohibited transaction.
Can my IRA invest in a newly formed entity (e.g., limited partnership, limited liability company, C corporation, land trust) that will invest in real estate?
Yes. Investments in newly formed private entities are not prohibited under the Internal Revenue Code, with the exception of subchapter S corporations.
Will Digital IRA assist with setting up a Limited Partnership, Limited Liability Company or other entity?
No. This is not a service that Digital IRA provides. You will need to contact your attorney or tax advisor with respect to the entity’s formation.
