Buy A Business

Written by Johnny Kitchens
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There are actually very few legal limits placed on the types of businesses in which an IRA can participate. For that matter, there are very few investments of any kind in which an IRA cannot legally participate. The major restriction concerns businesses in which you, or someone in your immediate family, own a controlling interest. For legal purposes, you and your IRA must be completely separate entities--in a business sense.

The majority of other restricted businesses are restricted not by the law but by availability. There are some investments for which it can be very difficult to find an IRA custodian who will hold the account. In the case of some self-directed IRAs, there are practically no restrictions. Those accounts are generally custodied by companies that do not care how you invest your IRA, they simply want to collect as many fees as possible.

When deciding with whom to place your IRA, it is extremely important to consider your investment options before you choose. The type of investments you make, how much risk you are willing to take, how much control you want over the account, and how much of the work you are willing to do yourself are all major factors to consider. You do not want an advisor that will hold you back. You want one that understands where you want to go and can tell you how best to get there.

Deciding Which Business to Buy

When it comes to actually buying a business, you have to consider whether you want to buy an existing business, you want to start a franchise of an existing business, or you want to start from the ground up. Whichever way seems best to you, you should know that it will take a lot of work--unless you are willing to simply supply the funds and let other people look after your investment. The best advice is to do what you know and be dedicated to seeing it through.

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