The LLC manager is the person with full authority to operate the IRA LLC: entering contracts, directing investments, and signing on the entity's behalf. As the IRA account holder, you are the manager.
The manager has signing authority for the IRA LLC. That means you can open bank and brokerage accounts, execute purchase agreements, hire vendors, and direct every aspect of the LLC's investment activity.
This is the core of checkbook control. The IRA owns the LLC and you run it.
Yes. Designating a co-manager is optional, and you can add or remove one at any time by LLC resolution. A co-manager holds equal signing authority. Any single manager can execute contracts and direct the entity independently.
A co-manager makes sense when another person will be actively involved in day-to-day investment activity. Common scenarios include a spouse with the expertise to manage investments, a parent acting for a minor child, or an adult child assisting an elderly parent.
Do not name a co-manager simply because that person is your partner or heir. Management roles have nothing to do with inheritance. Beneficiary designations are made at the IRA level, not within the LLC structure.
A successor manager is someone you designate in advance to take control of the LLC if you become incapacitated or pass away. Unlike a co-manager, the successor manager has no active role while you are managing the LLC. They step in only when the managing role becomes vacant.
Naming a successor manager is optional but recommended. Without one, there can be a gap in administration while an IRA beneficiary works through the process of assuming control.
Can I receive a salary or fee for managing the LLC?
No. Receiving any form of compensation (salary, management fee, or otherwise) for managing your own IRA LLC is a prohibited transaction under IRC Section 4975(c)(1)(D) and (E). You can direct the LLC to pay third-party vendors and contractors for legitimate services. You cannot be one of them.
Can a co-manager also be my IRA beneficiary?
Yes. Management roles and inheritance rights are completely separate. Your IRA beneficiary is designated with your IRA custodian, not within the LLC documents.
Do both managers need to sign contracts?
The operating agreement requires only one manager's signature to execute a transaction. Some counterparties, particularly real estate title companies, may request both signatures despite this language, however.
Can I change managers after the LLC is formed?
Yes. Adding, removing, or changing a co-manager or successor manager is handled by resolution of the LLC and does not require state filing in most cases.
This information is provided for educational purposes only and should not be interpreted as tax, legal, or investment advice. Readers are encouraged to consult a qualified professional who can offer guidance based on their personal situation.