Here’s Adam Bergman’s latest article from Forbes.com about the popularity of using an LLC to invest in real estate with a Self-Directed IRA –
Wyoming passed the first limited liability company (“LLC”) statute in 1977 creating a new entity type that combined the benefits of corporate limited liability protection with the pass-through tax treatment of a partnership. The IRS blessed the LLC concept some ten years later. From then, all fifty states established LLC laws and the LLC has become the entity of choice for almost all new small businesses and investment ventures.
Real estate investors have become the latest group to embrace the LLC. According to the Rental Housing Finance Survey from the Census Bureau and Urban Development, in 2015, fifteen percent of all rental properties were owned by LLCs or limited partnerships. Additionally, in 1991, 92 percent of rental properties in America were held individually. By 2015, that number dropped to 74 percent, largely driven by the growth in popularity of LLCs.