Add an LLC to Solo 401(k)

Add an LLC to Solo (k)

Some of our clients with the Solo 401(k) would like to add an LLC. Perhaps for anonymity, they just– that’s what they want to do and that’s not an issue at all. As plan administrator, you can approve an investment of the 401(k) into an LLC that we create and we set it all up, then you can be the manager, and now one of the advantages is that when you buy property, for example, it can be in the name of the LLC. And that can be very anonymous. For example, it could be, you know, Spartan Investing LLC, you know, as opposed to buying a property directly with your plan where there it would say, you know, Steve Shepard Investments 401(k) Plan and so there it is– it’s in the courthouse, it’s in the paper if it has to be published publicly so it’s there for the whole world to see. Where an LLC can give you more anonymity. It doesn’t give you, really, any more control, because as plan administrator, you have the check book control and you sign the documents. But it can be added, a little more expense, a little more expense on an annual basis, but really no more reporting and it’s a real good fit for a lot of our clients.