Frequently Asked Questions
How does an IRA LLC provide checkbook control and limited liability protection?
An IRA LLC, or a self-directed Individual Retirement Account Limited Liability Company, provides checkbook control and limited liability protection in a few key ways. Firstly, checkbook control is achieved as the owner of an IRA LLC has complete control over the funds of the IRA LLC. This means the owner has signatory control over his or her own retirement funds. This is facilitated by the creation of a business checking account that holds the LLC assets, which are the retirement assets. This setup offers greater investment flexibility as the IRA holder can manage his or her own retirement assets with ease. Secondly, limited liability protection is provided as the owners of an IRA LLC cannot be held personally liable for the debts of the business. This is a fundamental characteristic of any LLC, including an IRA LLC. However, it's important to note that there are exceptions to this rule. If a plaintiff or creditor is able to “pierce the corporate veil,” then the owner can be held personally liable.
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