Setting up an IRA LLC is a straightforward process. Most clients are fully set up and ready to invest within 3 to 5 weeks of completing their application, with state filing and account funding timelines being the primary variables. Here is how the process works, phase by phase.
Phase 1: Application
The process starts with a 10-minute online application. You will need a government-issued photo ID, at least one designated IRA beneficiary, and your chosen LLC name. If your address does not match your ID, have a recent utility bill or bank statement available as proof of address.
During the application, you will also make your registered agent election. If you qualify and prefer to serve as your own registered agent, you may do so. If you would like the added privacy of a commercial registered agent, or if you are forming in a state where you are not a resident, you can elect our registered agent service at that time. We will establish the agent relationship at the time of filing.
Once your application is submitted, our team reviews it and initiates the next two phases simultaneously: opening your IRA account at the custodian and filing your LLC with the state.
You handle: Completing the online application; providing ID and beneficiary information; selecting your LLC name and registered agent option. We handle: Review, custodian submission, LLC filing, and registered agent setup if elected.
Phase 2: IRA account opening
Your IRA is held by IRA Resources, our exclusive custodian partner. We securely submit your IRA account application on your behalf using the information you provided during signup. You complete one application, not two.
IRA Resources will send you a welcome email with account details and additional signature requirements. The IRA is the tax-advantaged owner of the LLC. All funding flows into the IRA first, then the IRA invests into the LLC to establish the Checkbook Control relationship.
Once your IRA account is open, you can initiate the funding process immediately. IRA account opening and LLC formation proceed in parallel, so starting the funding process early can shorten your overall timeline.
You handle: Responding to any custodian signature requests promptly; initiating your rollover or transfer as soon as your IRA account number is issued. We handle: Custodian submission and account setup coordination.
Phase 3: LLC formation and EIN
We prepare and file your LLC's Articles of Organization with the state, draft your IRA-specialized Operating Agreement, obtain the LLC EIN from the IRS, and establish registered agent service if you elected that option during your application.
State filing timelines are the primary variable in the overall setup schedule. Some states process filings same day; others can take two weeks or more. We submit promptly after your application is approved and monitor the status through approval.
Once Articles of Organization are issued and the EIN has been obtained, your LLC documents are complete, and you are ready to open your bank account.
You handle: Reviewing and signing the Operating Agreement; signing IRS Form SS-4 authorizing us to obtain the LLC EIN on your behalf. We handle: State filing, Articles of Organization, Operating Agreement drafting, LLC EIN, and registered agent setup if elected.
Phase 4: Bank account setup
Once your LLC documents and EIN are in hand, you open a business checking account in the name of the LLC. You choose the bank. Almost any institution that opens business accounts will work, and we can recommend a few banks with experience handling self-directed retirement plans.
To open the account, the bank will ask for your Articles of Organization, Operating Agreement, and the LLC EIN. You present yourself as the Manager and authorized signer. The account name should match your LLC name exactly.
This is your Checkbook Control account. Once it is funded, you direct investments from it without involving the custodian for each transaction.
You handle: Selecting a bank, opening the account, presenting LLC documents. We handle: Providing the Articles of Organization, Operating Agreement, and EIN documentation you need to present.
Phase 5: Funding the IRA
This phase controls the overall timeline. You can start the funding process as soon as your IRA account is set up. You do not need to wait for LLC formation or bank account setup to be complete.
Funding moves from your existing retirement account into the IRA at IRA Resources. Every dollar must pass through the custodian layer before it reaches the LLC. Once the IRA is funded, you submit a Checkbook Control Buy Direction Letter (BDL) to IRA Resources instructing them to invest the IRA funds into your LLC. IRA Resources processes the BDL and transfers the funds to your LLC checking account. At that point, your account is funded and ready to deploy.
Important: funds must go through the custodian. Do not deposit rollover or transfer proceeds directly into your LLC checking account.
Typical funding timelines by source:
- New IRA contribution: Clears in roughly one week.
- IRA-to-IRA transfer: Typically 2 to 3 weeks, depending on how quickly the sending custodian processes the request.
- Employer plan rollover (401(k), 403(b), profit-sharing): Generally 2 to 4 weeks.
- Government plan rollover (457, TSP): Generally 4 to 6 weeks.
You handle: Initiating the transfer or rollover with your current custodian; making contribution deposits if applicable; submitting the Buy Direction Letter to IRA Resources. IRA Resources handles: Processing the Buy Direction Letter and funding your LLC checking account.
Phase 6: Your first investment
With funds in your LLC checking account, you are ready to invest as you choose. You sign agreements, write checks, and wire funds directly as the LLC manager. No custodian approval is required for individual investments.
Phase summary
| Phase | Who Initiates | Typical Timeframe |
|---|---|---|
| Application | You | Day 1 |
| IRA account opening | We submit; IRA Resources opens | 1 to 2 business days |
| LLC formation and EIN | We handle | 1 to 3 weeks (state dependent) |
| Bank account setup | You | 1 to 3 business days after documents are ready |
| IRA funding | You initiate; IRA Resources processes | 1 to 6 weeks depending on source |
| First investment | You, as Manager | Immediately after LLC is funded |
Plan ready to invest: 3 to 5 weeks in most cases.
A note on your data
The information you provide during application is used solely to set up your plan. Once setup is complete, we delete non-essential application data, including copies of your photo ID, from our systems. Your ongoing account information is retained as required to service your plan.
Ready to get started?
The Application takes 10 minutes or less. Once submitted, setup begins the same business day.
Disclosure
This information is provided for educational purposes only and should not be interpreted as tax, legal, or investment advice. Readers are encouraged to consult a qualified professional who can offer guidance based on their personal situation.