- Please check with your local tax advisor regarding the local filing requirements.
If the LLC has more thane one member (e.g., two or more separate IRAs), then a federal Form 1065 must be filed annually to report the income but it does not pay income tax.
Form 5498: While the Form 5498, IRA Contributions Information, does not apply to the IRA funded LLC, this form is used to report the total value of the IRA including Roth IRA to the IRS. The value of the IRA funded LLC also gets indirectly reported on Form 5498. The self-directed IRA custodian not the LLC manager or IRA account holder prepare and files Form 5498 with the government by May 31 following the year to which the report applies.
Form 1099-R: Another tax form that applies to IRAs but indirectly impacts the IRA funded LLC is Form 1099-R Distributions From Pensions, Annuities, Retirement or Profit-Sharing Plans, IRAs, Insurance Contracts, etc., which is used to report distributions from IRAs. As a result, it is important to return funds from the LLC funded IRA prior to the account holder processing a distribution. The same is true if the member units from the IRA funded LLC will be distributed to the IRA account holder which is know as an in-kind distribution so that the IRA custodian can properly report the in-kind distribution.