A Michigan IRA LLC is a powerful tool for any investor, especially those who would like to benefit from Michigan real estate or other investments in the Michigan area. A Michigan IRA LLC can invest in, gold, private lending opportunities, tax liens and alternative investments as well as conventional IRA products like stocks, bonds and mutual funds.
The Michigan Limited Liability ACT (ACT 23 of 1993) provides limited liability protections that can be combined with the federal protections and benefits under IRA law. For those self-directed IRA investors seeking security, flexibility and simplicity over their investments an IRA LLC is a un unparalleled investment vehicle with countless advantages. Some of the more popular benefits include:
Tax Free Growth
Most investors can agree that the biggest expense to their profits is income and capital gains tax. A Michigan IRA LLC is treated as a tax exempt entity pursuant to section 408 of the internal revenue code and is superior to competing investors who utilize personal funds, debt or joint ventures to fund investments. Not only will your Michigan IRA LLC compound tax free ROI for faster growth but it will also add a margin to your bottom line that other investment vehicles cant afford.
Lower IRA Custodian Fees
Self-directed IRA custodians stay in business by charging you fees instead of selling investment products or managing your portfolio. By forming a Michigan IRA LLC you will put the IRA custodian in a passive IRS reporting position so their fees will be significantly reduced to a bare minimum. You will no longer incur cumbersome nickel and dime transaction fees, check fees, expedite fees, processing fees, registration fees, asset fees, etc .
With a Michigan IRA LLC you can avoid middle man third party administrators or custodians who charge excessive asset value based fees. All IRA custodians are regulated, insured or bonded and are tax code or IRS approved. Your IRA LLC will maintain its own investments, books and accounts so it does not matter which custodian you choose to hold your Michigan IRA LLC, so long as they are familiar with the strategy and find it to be administratively feasible to hold.
Michigan LLC statutes offer limited liability protections and guidance for submitting Articles of Organization and governance requirements for your Michigan LLC. In addition the state of Michigan allows limited liability companies to be owned partially or wholly by an Individual Retirement Account which will ultimately frame your self-directed LLC IRA hybrid. Using a Michigan IRA LLC for your self-directed IRA vehicle will shield you from your IRAs investment risks and will shield your IRA from your personal liabilities. If setup and managed correctly, an IRA LLC in Michigan can be extremely difficult for litigators, creditors and even government entities to penetrate.
True asset protection is obtained with the ability to be flexible and move your pieces on the board and there is no other retirement plan that will give you this ability better than the LLC IRA hybrid. With the ability to move your money and investments around at the drop of a hat and checkbook IRA control, your Michigan IRA LLC has iron clad protections that arent offered in conventional retirement plans.
Checkbook IRA Control
A Michigan IRA LLC will give you true checkbook IRA control so you have the ability to strike while the iron is hot. What checkbook control means is that you literally write the checks, sign the contracts and make the investment decisions for your IRA at a moments notice. With IRA checkbook control you no longer need approval for each IRA investment or related expenses and are empowered to make those decisions on your own. This ability proves to be extremely useful when taking advantage of opportunities, especially in bidding environments where it is almost necessary.
In Michigan your IRA LLC will empower you with a unique capacity as a self-directed IRA investor and you will have ultimate authority to make decisions in this capacity. For example, when you decide to move your IRA to a local bank of your choosing it will be held in the name of your Michigan LLC and the bank will have you listed as the manager of this LLC. When the bank issues your Michigan LLC a checkbook, debit card and other tools that are provided with to Michigan IRA LLCs you will be able to utilize these tools to your convenience.
Investment opportunities come and go and most IRA holders are not even in a position to take advantage of alternative investments or opportunities outside of conventional investments. Since most investment vehicles (including conventional investments) view a Michigan LLC as an acceptable investment vehicle you will only be restricted to the investments that are specifically prohibited for IRAs in general which are limited only to life insurance, collectibles and 6 self-dealing transactions.
A Michigan IRA LLC will add no additional restrictions and only opens up opportunities that other IRA financial wont. A Michigan IRA LLC can invest in real estate, gold, tax liens and deeds, foreclosures and estate sales, private lending opportunities, public or private investments, foreign or domestic investments, partnerships, etc . The possibilities are virtually endless.
Other Resources IRA LLC Michigan
Secretary of State: http://www.michigan.gov/dleg/0,1607,7-154-35299_35413—,00.html
Phone: (517) 241-6470
Email: [email protected]
P.O. Box 30054
Lansing, MI 48909
Name search: http://www.dleg.state.mi.us/bcs_corp/sr_corp.asp
Corporation and LLC. forms and fees: http://www.michigan.gov/dleg/
Online Services http://www.michigan.gov/dleg/0,1607,7-154–22352–,00.html
Department of Revenue: http://www.michigan.gov/treasury
Department of licensing: http://www.michigan.gov/som/