Direct Register Shares from an IRA

How to DRS an IRA by setting up an IRA LLC

  • Find a non-broker custodian willing to hold “alternative assets,” specifically, a Limited Liability Company (LLC).

  • Form an LLC with your state for investment holdings. There are companies who can take care of this entire setup for a fee, or you can DIY. Like anything, the DIY route can save money, but takes more time and research. If you choose a paid IRA LLC setup service, skip to "Once your IRA LLC account is set up".

  • The LLC filing process and cost varies by state, but is generally done through each state’s “Department of Financial Institutions” and can usually be done online.

  • Apply for an Employer Identification Number (EIN) online directly with the IRS here.

  • Drafting your IRA LLC Operating Agreement will need to include specific wording as it relates to IRAs, so this part may be best to hire a professional such as a tax attorney, CPA or specialized service.

  • Request and submit an application to your new non-broker custodian for an IRA that can invest in “alternative assets” including LLCs. This often requires legal descriptions of your LLC, such as Articles of Organization (from your state filing), Operating Agreement and Subscription documents (professionally drafted).

  • Follow your custodian’s instructions for funding your IRA LLC via a “Purchase Authorization” which essentially means you deposit money into your new IRA, and the IRA “buys” 100% ownership of the LLC you just set up.

  • Once your IRA LLC account is set up, you can use a Letter of Instruction to transfer your shares from your broker IRA directly to DRS at Computershare in the name of your IRA LLC, or your non-broker custodian may be able to make this transfer and DRS for you.

  • Keep in mind it will be your responsibility, as Manager of your IRA LLC, to report all transactions in and out of your IRA LLC account according to your LLC Operating Agreement.