Business Trust for Investors in California If you’re a California investor with an IRA, looking to set up a self directed IRA structure, don’t use the LLC. With the LLC, you end up having to pay $800 per year for the franchise tax, as a California resident. Instead, what you should use is what’s known as a business trust. Business trusts aren’t subject to the franchise tax laws in California. And therefore, what you’re able to do, is perform all of the actions that you would normally be able to take in a self directed IRA. I.e., direct the funds where you would like to and the investments you would like to without having to involve the custodian. But without having to pay the franchise tax. An important point to note here though is that, you’re not gonna have the asset protection piece that an LLC or a series LLC would provide, so keep that in mind. My name is Scott Smith, and I’m an Asset Protection Attorney. I’m a real estate investor, and I wanna help you.