I've been reading the excellent book The Self Directed IRA Handbook by Mat Sorensen.
My understanding is that I can achieve personal control of the checkbook for my retirement investments by forming an LLC that is wholly owned by my IRA (not owned by me), with the requirement being that all capitalization of the LLC must come from my IRA's account with its custodian, with no funds ever coming from my personal bank account.
What I can't understand is how the initial funding and formation of the LLC is supposed to happen. In general, investment from the IRA is supposed to come from the IRA's custodian account, and deposited into the LLC's checking account. But, one can't open a checking account in the name of the LLC until the LLC has filed its initial registration with the state. So where does the money for the initial state registration/formation fees come from?
What makes the most sense to me would be to have the formation fees come from the IRA's account with the custodian. But, I haven't seen any custodians offering "LLC formation" as an allowable type of transaction.
The only other possibility I can think of is for the formation fees come out of my own personal bank account. But, that seems contrary to the rule disallowing the IRA owner from capitalizing the LLC.
What's the right order of operations for paying for the formation of an LLC wholly owned by a self-directed IRA?