Can an LLC Hold Precious Metals?

Recent Tax Court rulings have caused many to inquire whether LLCs can hold precious metals. The answer is in the affirmative.

However, it’s not quite as straightforward as opening a new IRA bank account with Green Hill and investing funds into an LLC. Here are several things to keep in mind before taking this route.

Title to the Metals

Precious metals provide more than just stable money; they’re the ultimate form of asset protection too. By investing your IRA with a Precious Metals LLC, the value of your assets will remain secure from creditors’ claims. Buying precious metals through such an IRA LLC ensures a clear chain of title which safeguards against claims by them against you directly as the purchaser.

Holding precious metals in your personal name puts them at risk from lawsuits; creating a gold IRA or silver IRA LLC offers asset protection.

Firms specializing in self-directed retirement account services can be invaluable partners for purchasing precious metals via an IRA. They will set up an LLC specifically designated to purchase precious metals, take care of all related paperwork with the IRS, then arrange to have the LLC buy and store its metals through an authorized depository.


When purchasing precious metals, the IRS considers them capital assets. When they are sold or exchanged for cash, any profits (gains) must be reported on your tax return based on subtracting their original cost basis from their sales price – working with a professional can help ensure accurate accounting of gains.

Holding metals in an LLC rather than under your individual name can help reduce unnecessary taxes and protect assets from creditors and lawsuits.

Consult a tax professional who specializes in precious metals to gain the expertise needed to accurately report transactions and minimize tax liabilities. Furthermore, this expert will identify deductions and credits available for investments related to precious metals investments. Keep in mind that tax rules surrounding precious metals investments can be complex, so any errors could result in fines from the IRS as well as audits from their auditors.

Asset Protection

Many investors turn to precious metals investments as a hedge against inflation and market volatility, sometimes using self-directed IRAs for these purchases. Many investors wonder whether an LLC protects them against lawsuits or creditor claims.

Answering this question is complex. An LLC offers legal protections depending on its structure and management; for your individual situation it would be beneficial to consult a financial expert or asset protection attorney about your particular circumstances.

An LLC protects a person who owns precious metals by legally isolating it from his/her personal assets, thus shielding these from possible lawsuits against that individual and requiring judgment creditors to go through the LLC in order to access the assets; this process could take time if your state offers strong choice-of-law laws; additionally, taxes may apply when receiving distributions from said LLC.


Many investors use precious metals as a long-term hedge against inflation and market instability, purchasing them via retirement funds. Unfortunately, there may be restrictions regarding how precious metals can be stored and held.

Precious metals typically remain within your IRA when held under custodianship or third party storage facilities; however, this leaves it open to certain liabilities and risks.

McNulty, the recent US Tax Court case which highlighted these issues. According to the IRS, when McNulty used their self-directed IRA to buy gold and silver coins they weren’t taking physical ownership;

An SDIRA owned LLC can resolve this issue and allow you to take full advantage of holding precious metals within your retirement account.

Raymond Banks Administrator
Raymond Banks is a published author in the commodity world. He has written extensively about gold and silver investments, and his work has been featured in some of the most respected financial journals in the industry. Raymond\\\'s expertise in the commodities market is highly sought-after, and he regularly delivers presentations on behalf of various investment firms. He is also a regular guest on financial news programmes, where he offers his expert insights into the latest commodity trends.

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