Maintenance Requirements

Now that your LLC is set up, what are you ongoing responsibilities as a manager?

IRA Rules

It’s critical to remember that the funds within the LLC’s operating account are IRA assets and carry strict rules regarding their usage.

  • Funds can only be used to make investments or pay expenses related to investments.
  • If you wish to use funds personally, you must send funds back to your IRA account and take a distribution.
  • Should you wish to add funds to your LLC’s operating account, you can only do so by engaging your IRA custodian and initiating a transfer of assets through your IRA.
  • IRC 4975 and section 590 are great reference points to familiarize yourself with the rules of IRAs surrounding parties this LLC cannot do transactions with, as well as investments this LLC is forbidden from making. 

Annual State Filings

Filing requirements vary by state, but most states have some type of ongoing filing. Some states require and annual, others require a biennial report. In addition to the reporting requirements, states also collect a fee. Let Equity Doc Prep help.

Foreign Qualification

 If you plan on engaging in investments in a different state than which the LLC was formed, you will need to register with the state of the investment. Let Equity Doc Prep help.

Annual Partnership Tax Filings

Single-member LLCs with the IRA as the sole member do not need to file a partnership return. However, for multi-member LLCs, including cases where there are two IRA members, a partnership return is required.