How It Works
How the IRA LLC Structure Works
Funds move through a clear, established chain — from your retirement account to a self-directed IRA custodian, into an IRA-owned LLC, and on to a cryptocurrency account or wallet that you direct. The following explains each step educationally.
Retirement Account
You open a new self-directed IRA or transfer funds from an existing retirement account (such as a traditional IRA, Roth IRA, SEP, or solo 401(k)) to a self-directed IRA custodian that permits alternative investments.
Self-Directed IRA Custodian
The custodian administers the IRA and holds the retirement assets at your direction. The custodian is an independent third party — SDIRACrypto.com is not a custodian.
IRA-Owned LLC
We form a special-purpose LLC that is owned entirely by your IRA. The LLC has its own EIN and a customized operating agreement. You are appointed as the manager of the LLC.
Cryptocurrency Account / Wallet
The LLC opens a checking account and, in the LLC's name, a cryptocurrency account or wallet. IRA funds directed into the LLC are used to fund these accounts.
Investor Directs Transactions
As manager of the IRA-owned LLC, you direct buy and sell transactions directly from the LLC — without seeking custodian approval for each individual trade. This is commonly called checkbook control.
Important Notes
- The structure does not change your obligation to comply with IRS rules governing IRAs, including the prohibited-transactions rules.
- You select your own self-directed IRA custodian, cryptocurrency exchange, and wallet provider. SDIRACrypto.com does not recommend or endorse any of these.
- This explanation is educational only and is not legal, tax, or investment advice.
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Have questions about establishing a Self-Directed IRA LLC for cryptocurrency? Call us — we're happy to explain the structure and answer your questions with no pressure.
We establish the structure. You make the investment decisions.