FLORIDA IRA LLC

The Florida Self Directed IRA Limited Liability Company.

What is a Self Directed IRA LLC? It is your ability to control how your IRA is invested. IRAs can be created by contribution subject to annual dollar limits or by rollover from a qualified plan. The Internal Revenue Code requires a written agreement containing certain provisions when setting up an IRA. When setting up your Self Directed IRA our Firm will complete the necessary agreement to complete the process.
Some of the more complex IRA Agreements must be submitted by the IRA custodian or trustee for approval by the IRS prior to use. We will be glad to provide such direction if this step becomes necessary.

The IRA owner cannot normally take out distributions prior to age 59 1/2 without a penalty, and except in the case of a Roth IRA, must start taking distributions out by April 1st of the year after the year in which the IRA owner turns 70 1/2. No one has any rights to an IRA during the lifetime of the IRA owner except the IRA owner. There is no such thing as an irrevocable beneficiary designation during the lifetime because the IRA must always belong to the individual it was established for during the lifetime of that individual. There are no automatic spousal rights in IRAs under federal law as they are not subject to ERISA.
Qualified plans have rules that are basically the same as those for IRAs. There are penalties for withdrawal before the appropriate age, and in some cases, withdrawals are prohibited until retirement or separation from service. All plans will have a written agreement, a trustee and a plan administrator; but it is important to note that some plans allow the participant to direct investments within their account.
Note: The IRS also makes it clear that despite the fact that the IRA owner may direct investments and retain most traditional powers that might otherwise create a passive trust, such direction by the IRA owner will not cause the assets of the IRA to be treated as owned by the IRA owner.


PROHIBITED TRANSACTION

There are some additional rules for alternative investing with the IRAs. Section 4975 of the Internal Revenue Code addresses prohibited transactions. The main focus of this section is self-dealing. If a transition within an IRA is deemed to be prohibited, it can result in the disqualification of the entire account as of the first day of the tax year within the year that the transaction occurred. This can result in unexpected income tax liability, as well as penalties for early distribution if the IRA owner is under 59 1/2
Section 4975 of the Code addresses what is prohibited, subject to the following exceptions:

the sale, exchange, or leasing of any property between an IRA and any Disqualified Person;
The lending of money or other extensions of credit between an IRA and any Disqualified person.
The furnishing of goods, services, or facilities between any Disqualified Person and an IRA;
The transfer to any Disqualified Person or use by any Disqualified Person (or for the Disqualified Person's benefit) of the income or assets of an IRA; or
The receipt by any Disqualified Person of any consideration in connection with a transaction involving my IRA.

A "disqualified Person," as defined under Section 4975 of the code, includes, but is not limited to, the following:

the IRA owner;
the IRA owner's Spouse;
the IRA beneficiary;
the IRA owner's ancestors and lineal descendants;
spouses of the IRA owner's lineal descendants;
anyone providing services to the IRA, including the IRA Custodian and any investment managers r advisors;
any corporation, partnership, trust or estate in which the IRA owner individually has a 50% or greater interest.

Provided that an IRA does not engage in a prohibited transaction, it is clear from Private Letter Rulings, Department of Labor Rulings and Tax Courts Opinions that mere investment in real estate, closely held business interest or other alternative types of investments will not disqualify the account and will allow the IRA owner to enjoy tax-deferred growth.
Non-disqualified loopholes:
Brother, sister, Uncle, aunt, cousin.


UNRELATED BUSINESS TAXABLE INCOME AND UNRELATED DEBT-FINANCED INCOME

Retirement Plan income that is generated from a trade or business regularly carried on by such account that is not substantially related to its tax-exempt purpose could be subject to UBTI which is ordinary income at the trust tax rate, payable by the IRA account. Additionally, leveraging of real estate can create Unrelated Debt-Financed Income. There are exceptions in the UBTI and UDFI, but each transaction must be thoroughly reviewed.


PROTECT YOUR IRA

As stated above, if a transaction within an IRA is deemed to be prohibited, it can result in the disqualification of the entire account as of the first day of the tax year within the year that the transaction occurred. A way to protect an IRA owner from such a problem is to segregate any investments that may fall into a "gray area" or that might appear subject to scrutiny into a separate IRA account. By doing so, the IRA owner is only putting the IRA at risk so long as the prohibited transaction is not so egregious as to generate additional penalties beyond the IRA itself. This is one way to protect the IRA so that in the event that a prohibited transaction occurs, it does not disqualify any other retirement assets.


IMPORTANT BANKRUPTCY PROTECTION EXEMPTION FOR SELF-DIRECTED IRAs

In a victory for self-directed IRA owners, the U.S. Supreme Court ruled in April 2005 that IRAs receive Federal Creditor Protection. This means that creditors cannot seize assets in an Individual Retirement Account.

The Supreme Court ruled unanimously that IRAs should join pensions, 401(k)s, Social Security, and other benefits tied to age, illness, or disability, that are afforded protection under federal bankruptcy law and thus shielded from creditors in bankruptcy proceedings.

Justice Clarence Thomas, writing for the Court, said a bankrupt Arkansas couple was entitled to keep more than $55,000 in retirement savings from creditors. He reasoned that IRAs are benefits tied to a person's age under the federal statute because a tax penalty is imposed if a person makes withdrawals before age 60.

However, the court did not address the topic of whether large IRA accounts would be protected under the federal bankruptcy code. The code has a provision stating that certain assets (such as retirement plans) that are deemed to be "reasonably necessary" to support a debtor and his/her family are protected from creditors. The uncertainty of what is "reasonably necessary" means some assets in large IRAs might not be protected.


Although a fantastic way to make money with your savings, you have read but a few of the technicalities involved with IRAs dealings. The Law Offices of Nick Spradlin stands ready to navigate you through such technical impasses to protect your hard earned savings from disastrous endings.

$17.95 - Green E-Kit ( Save Time!!!) for $17.95 we will e-mail your E-Kit to you.
I am excited to tell you about our new product "the Green E-Kit". The Green E-Kit has quickly become popular with our clients in the state of Texas and New York and we are now offering it in Florida. You will still receive articles, operating agreement, bylaws, minutes, stock certificates and a electronic seal. The reason for its popularity is that if you misplace it you only have to look back to the email we sent you with your Green E-Kit attached. If you accidentally delete your E-Kit it only costs $39 for us to send you another copy. We only offer E-Kits, preferred by 99% of clients. Physical kits can be special-ordered for an extra fee.

$299.00 - Federal Tax ID - Non U.S. Citizen/Non Resident/Non Green Card Holder
The Federal Tax ID Number is required to open a business account and to put your license into the business name. The tax ID for a NON U.S. CITIZEN AND NON U.S. RESIDENT/NON GREEN CARD HOLDER will actually be acquired by us for you. Because the processing time is taking 3-8 months to acquire a tax ID without a SSN, for yet an additional $199 we can be voted in as secretary to acquire tax IDs for corporations.

$145.00 - Registered Agent Service/Attorney Counsel Service
Our Law Firm has a vital and effective service that no entrepreneur at any level should be without. The Registered agent Attorney Counsel Service. 1. We will receive any lawsuits that are served upon your company so you avoid a default judgement for failure to receive said service for not being available at your office to receive said service; 2. unlike nonattorney registered agents, we are required to maintain attorney client privilege; Finally, you get limitless telephone consultations all year with regards to your business legal matters. Fee covers 12 months of service.(price valid at time of incorporation/organization only).

$179.00 - DBA (fictitious name)
If you would like to have a secondary name to advertise your corporation under, it is required to have what is called a DBA or fictitious name registered correctly with the state of Florida under your corporation. We will register the fictitious name and complete the required resolutions ( 7-8 day completion time ). After receiving the registered fictitious name from us you can then complete a second registration at the county level where you are conducting business, for $170. If you would also like our offices to file the News Paper filing for your that fee will be an additional $199.

$299.00 - Company-Managed Company.
Company Managed Company. If your company is to be managed by another company there will be an additional fee of $299 for the review of the managing company's documents and help with drafting the proper voting minutes to legally allow for the management position to be implemented, and to obtain the letter of good standing.

$99.00 - MANDATORY - FinCEN Beneficial Ownership Information Report
A Beneficial Ownership Information Report is a document that provides information about the beneficial owners of a company or other legal entities. Beneficial owners are individuals or entities that ultimately own or control a company, even if their ownership is not immediately apparent from the company's legal structure or publicly available records. These reports are now required by federal government's Financial Crimes Enforcement Agency to enhance transparency and combat money laundering, corruption, and other illegal activities. This Report is mandatory and companies registered in 2024 will only have 90 days for this to be completed to avoid monetary penalties and incarceration. If you file in 2023 you will have 12 months to complete this obligation. We charge an addtional $99 for a 4-day rush, $199 for a 2-day rush and $299 for a same day rush. Depending on the time of day of your request we not accept your application for same day service (it is up to our discretion). The Base fee covers up to five persons and $59 per additional person. All parent companies are $99 apiece additional.

$0.00 - Special Purpose Self Directed IRA Federal Tax ID (FEIN)
Free with Purchase of SDIRA LLC from our Law Offices. Federal tax Id for your SDIRA, with special language notification to the IRS on Tax ID application.

$550.00 - Multimember IRA LLC OPERATING AGREEMENT
If your operating agreement needs to be a multimember operating agreement the fee for said operating agree is an additional $550.00

FREE WITH IRA LLC - Free Single Member Operating Agreement
(Free when organizing your business) Every Limited Liability Company MUST have an Operating Agreement to complete the owner's personal protection in the face of Litigation. The Operating Agreement MUST provide a clear outline of the rights and responsibilities of all parties to the LLC. This Agreement's provisions cover the procedural issues such as voting rights; rights and responsibilities of the Managers and Owners; financial matters; methods for amending the Operating Agreement; Owner withdrawal; dissolution of the Company; and the Buying and selling of the company's Ownership interest. It is a good idea that LLC governing procedures be establish and memorialized in a written Operating Agreement at the time of incorporating because after the formation of the LLC, matters may not be so easily agreed upon. Our tailor made Contract spells out the rights and obligations of the parties in the event disagreements come up. Even family owners should have an OPERATING AGREEMENT, since it could settle some issues without the expense of litigation. Having an Operating Agreement brings transparency and predictability with regards to issues mentioned above and thus tranquility when engaging in your day to day business activities. We include a single member operating agreement for free for single member LLCs; if the company is a Multimember LLC then a multi-member Operating Agreement will be required.

$140.00 - BUSINESS ENTITY ACTING AS MANAGER FOR BUSINESS ENTITY
If you wish to have an existing business entity act as manager for a new start-up entity, our fee is $140.00 to make this happen. We will need to review the documents of the existing company and help create a set of voting minutes to allow for the management by the existing company.