Invest in a Limited Liability Company
- • Mainstar Trust fees for accounts holding LLCs:
*Does not include one-time set-up fee of $25, transaction activity fees, or fees related to other holdings. **Annual account fee may differ for Individual K, HSA, EBP and taxable accounts.
- • For a complete list of Mainstar Trust fees click here.
- • Work with your attorney to create and evaluate the benefits of an LLC. Mainstar Trust has referral firm options should you need assistance.
- • Contact Mainstar Trust at 1-800-521-9897 to see if Mainstar Trust has already accepted the specific LLC as administratively feasible.
- • If the LLC has not been accepted as administratively feasible, contact your advisor or the product sponsor to provide the following required documents to Mainstar Trust:
- Completed Asset Information Worksheet
- Articles of Incorporation or Certificate of Formation
- Prospectus, Partnership Agreement, Operating Agreement or Memorandum
- Subscription documents
- Sample copy of a confirmation or certificate
- • Mainstar Trust requests the sponsor to provide a sample copy of a confirmation or certificate to ensure that the sponsor understands what must be confirmed back to Mainstar Trust on every transaction.
Please provide a sample confirmation on company letterhead to Mainstar Trust and include the following:
- • the date the purchase was processed
- • the number of shares/units purchased
- • the total value of the shares/units purchased
- • how the dividends are being paid, (cash or reinvest)
- • the confirmation will need to be signed and dated by an authorized signor of the sponsor
- Provide an opinion letter from a qualified professional if you are a direct or indirect owner of 50% or greater of the alternative investment entity. IRC 4975 outlines guidelines for prohibited transactions within IRAs.
- • IRA investors are encouraged to consult with professional advisors to ensure that you understand tax, legal or investment issues related to the use of IRA funds in LLCs. Also, refer to IRS 590, 598, UBTI IRC 4975, Prohibited Transactions and DOL Plan Asset Rules.
- • Prohibited transactions – the IRS has specific guidelines for what is a “disqualified person” in an IRA. Any direct or indirect owner of 50% or more of any of the following could make you a disqualified person:
- • The combined voting power of all classes of stock entitled to vote, or the total value of shares of all classes of stock of a corporation that is an employer or employee organization described in (3) or (4);
- • The capital interest or profits interest of a partnership that is an employer or employee organization described in (3) or (4); or
- • The beneficial interest of a trust or unincorporated enterprise that is an employer or an employee organization described in (3) or (4)
- • For a list of IRS prohibited transactions in IRAs click here
- • Email all documents to email@example.com for review and acceptance prior to opening an account or executing a purchase.
- • Once Mainstar Trust has accepted the LLC as administratively feasible, open your Mainstar Trust account (see » below). Then email the following required documents to firstname.lastname@example.org or contact us at 800-521-9897: