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!
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.
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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.
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