Can I use my Self Directed IRA LLC to invest in a business?
Yes. As long as the business is not owned by a disqualified person you are permitted to use your Self Directed IRA LLC funds to invest in the business. However, any business regularly carried on or by a partnership or LLC of which the Self Directed IRA LLC is a partner or member is an unrelated business. For example, the operation of a shoe factory, the operation of a gas station, or the operation of a computer rental business by an LLC or partnership owned by the Self Directed IRA LLC would likely be treated as an unrelated business and subject to UBTI.
To learn more about owning a business through a Self Directed IRAs and some strategies for avoiding UBTI please contact us.
Please contact one of our Self Directed IRA Experts at 800-472-0646 for more information.