What is the process for my IRA to invest in a private company?

Once you have identified a private company you would like to invest in with your Vantage Self-Directed IRA, you will need to submit a completed and executed Buy Direction Letter – Private Company along with the copy of the companies Operating Agreement or Subscription Agreement to Vantage. Vantage clients should ensure that all entity documents outlining the IRA investor is vested as follows: Vantage FBO (Client’s Name) IRA.

What are the fees associated with investing in a private company?

There is a $125 transaction fee to purchase private company shares/units within your IRA regardless of the value of the asset purchase. A detailed overview of all account fees can be found in the Fee Schedule.

How should the ownership of the private company documentation be titled and addressed?

The ownership of your IRA purchase into a private company should be titled and dated as follows:
Vantage FBO (client name) IRA
8742 E Via de Commercio, Scottsdale, Arizona 85258

Should professional service expenses be paid out of my IRA (i.e. legal, accounting, tax, document preparation, etc.)?

Yes, any professional service fees incurred to establish and maintain the alternative asset held in your IRA should be paid from your IRA by submitting a Payment Authorization Letter (PAL and invoice. Paying for a professional’s service fees with personal funds outside of your IRA could be viewed as a prohibited transaction.

Can my IRA invest in a business I currently own and/or control?

No, this would be considered self-dealing (disqualified persons/related parties) and a prohibited transaction.

If my IRA invests in a private company (i.e. LLC, LP, etc.), is an annual fair market valuation required?

Yes, a fair market valuation of the units/shares of the company, along with substantiation, must be provided to Vantage annually to comply with the Internal Revenue Service reporting requirements.