LLC and Partnership Advantages in a Self-Directed IRA

When most people think about investing in LLCs and partnerships, they usually exclude the possibility of doing it through a Self-Directed IRA.

IRAs, they figure, are meant for market-based investments like stocks or mutual funds. To many investors, an IRA is nothing more than a stock investing account that you set aside while working on your other, more pertinent, investments.

Needless to say, we here at have a few things to say on the subject. Specifically, we take issue with the idea that an IRA is not an effective tool for investing. To that end, we’ve put together this brief list of investment advantages you can use when using a Self-Directed IRA to invest in LLC and partnerships. Here, you’ll learn that there’s more to IRAs than you initially thought…and what you didn’t know might be able to help you get more return on your investment.

Independence from Wall Street-Based Retirement Accounts

Take your average retirement investor. They might be in their 40s or 50s, with some money put away. They don’t know much about investing, but they know that their money is in stocks and mutual funds through the IRA of their choice. So what do they do? They watch the stock market every day, hoping that it continues to go up and up and up in order to make their investment seem wise.

Is there wisdom to investing in the stock market? Well, it depends. If the stock market is your only investment, we think that it would be wise to diversify your retirement plans. If your investment in the stock market is part of a greater strategy, we think there’s wisdom in that.

If you want to follow the latter course, investing in LLC and Partnerships through a Self-Directed IRA allows you all of the advantages of an IRA but with the flexibility of investing outside of the traditional bounds of the stock market. The IRS does not limit you to stocks and mutual funds—so why limit yourself?

Utilize IRA Benefits While Investing on Your Own

Because retirement accounts like Roth IRAs have their own “set of rules” when it comes to investments, you can use these rules to your advantage in a Self-Directed IRA. There are some restrictions, of course, such as having money in an IRA for a long time before you invest it. But when you take control of your IRA, you’ll find that there are a lot of reasons—financial, as well as strategic—to do much of your investing through a Self-Directed IRA.

What’s more, you can invest in a number of different company types through your IRA, including S-Corporations, C-Corporations, LLCs, joint ventures, closely-held businesses, and even farms and ranches. This diversification is an added advantage that is already “built in” to a Self-Directed IRA.

Claiming More Control Over Your Financial Future

Perhaps the most direct benefit of investing in an LLC or partnership in a Self-Directed IRA is that it allows you to grab hold of your own financial destiny, no longer leaving your strategy to the upturns and downturns of one type of market. True diversification in investments means finding more than just one type of investment that suits you—in a Self-Directed IRA, LLCs and Partnerships are just a couple of your options.

To continue learning about Self-Directed IRAs, be sure to keep browsing our website here at—or better yet, get in touch with us directly at 866-7500-IRA(472) to start learning more about the possibilities of a Self-Directed IRA and what they might mean for your retirement strategy.

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