Skip to main content

If one of my companies files bankruptcy, is my other business safe (IRA included)?

Baltimore, MD |

I am 75% owner in an LLC in MD and also the sole owner of another LLC in MD. I am interested in setting up an IRA with the company I am the sole owner of. If for any reason my other LLC has to file bankruptcy, would my IRA be safe or subject to seizing? Furthermore, how would the other business's bankruptcy effect the other company I am sole owner in? Neither companies are related, other than me being an owner in both. Thank you!

+ Read More

Attorney answers 3


As long as you keep all of the business assets and liaibilities seperate, you should be fine. There can be no comingling of any assets.

The previous information is solely for informational purposes only. If you have further questions, please contact an attorney in your area for more specific answers. Responding to your question in no way creates an attorney/client relationship, and none of the specific guarantees of privacy exist. If you have found this information helpful, kindly check the "helpful" box.


Your companies cannot set up IRA's. That is an INDIVIDUAL Retirement Account, which you set up outside your businesses. Filing a bankruptcy for a business does not make sense unless you want someone to take over the liquidation. The business cannot get a discharge. Your ownership interest in the LLC's is an asset in your personal filing, so if the LLC's have any value, you may want to reconsider filing. You should consult with a local attorney.


You need to structure the LLCs correctly and keep them separate to protect each one from the other. The IRA (even a SEP and SIMPLE only) is your account and your money. Talk to a CPA about setting it up if you are using company funds to matching or even fund it. The money is held by a third-party on your behalf and the fund is not affected by your company.

Mr. Goldstein is a Virginia-licensed attorney only. The information is not, nor is it intended to be, legal advice. You should consult an attorney for individual advice regarding your own situation. Answering this question does not in any way constitute legal representation. Contacting Mitchell Goldstein or the Goldstein Law Group does not constitute legal representation, nor is any information you provide protected by attorney-client privilege until otherwise advised.

Business topics

Recommended articles about Business

What others are asking

Can't find what you're looking for?

Post a free question on our public forum.

Ask a Question

- or -

Search for lawyers by reviews and ratings.

Find a Lawyer