Can an LLC Own Precious Metals?

Can an LLC own precious metals

Precious metals offer security, peace of mind and wealth preservation; however, storing bullion presents its own set of challenges.

Numerous self-directed IRA holders are opting to store precious metals at home so as to save on third party storage fees; however, recent tax court cases demonstrate this approach could be hazardous.

Asset Protection

As with all investments, protecting your assets requires careful preparation. This includes identifying those you want to shield and devising an approach for accomplishing that goal; then creating trusts or nuptial agreements or even setting up limited liability companies (LLCs). These may all serve as forms of asset protection.

An LLC is a business structure that combines partnership tax benefits with corporate limited liability protection, with members consisting of individuals or other LLCs as owners. Profits and deductions accrue directly to these members who then file them as income on their personal tax returns.

Some investors opt to store precious metals as single-member LLCs to provide more flexibility when selecting their depository and to ensure clear title transfer. Although this method can be more costly than traditional storage solutions, it also provides unparalleled asset protection. To learn more about this option speak with a Midland advisor.


Precious metals offer investors an excellent way to diversify their portfolios and protect themselves against market volatility.

Precious metals offer an unprecedented degree of privacy when it comes to investments, making them easy for you to own and store wherever it suits your lifestyle. You can take it along when traveling abroad or pass them along as inheritance to future generations.

An LLC is an excellent way to safeguard assets through estate planning and asset protection. By separating personal assets from those held by the company, courts may find it harder to “pierce the corporate veil” and go after individual members’ assets in case the business experiences bankruptcy or other legal difficulties.

Additionally, LLCs often present tax advantages. When investing in precious metals through an LLC, profits and deductions can be reported on members’ individual tax returns instead of being taxed at corporate rates.

Chain of Title

Chain of Title documents serve to establish legal property ownership and deter unjustified claims against real estate. Lenders and insurers typically require this document before providing financing or coverage on real estate properties.

Establishing previous owners in a chain of title requires collecting and organizing property-related documents, such as deeds, mortgages, liens and easements. Ideally these will give an accurate description of the property itself along with any past owners and any restrictions or requirements on its usage.

As soon as precious metals are transferred to an LLC, they become company assets rather than personal ones for each member. This process, known as pass-through taxation, protects members from being subjected to double taxation on profits, deductions and credits earned through the LLC; however, this also reduces marketability of precious metals sold via dealers and may discourage sales altogether.

Investment Options

Investors commonly purchase precious metals as retirement investments through retirement accounts or stock brokerage accounts. Stock brokerage accounts also can invest in equities through stock brokerage accounts while investment LLCs may invest in mutual funds and index funds as well as cryptocurrency or real estate assets.

Asset protection using trusts may be used by some, though this strategy involves the transfer of physical possession of your assets into their name as trustee. Before proceeding with this strategy it’s wise to speak with a qualified attorney first.

An alternative option is forming a Wyoming checkbook LLC, which enables you to manage your investments without being restricted by custodian restrictions. Wyoming LLCs cost less than $200 annually to maintain, providing asset protection against creditors who might try to take legal action against you. Your attorney can assist with transferring existing gold and precious metal accounts into this type of legal structure – be wary though of storing them at home as this constitutes distribution by the IRS and can trigger their 10% negligence penalty!

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.

Categorised in: