QUESTION: Can I use the 401k small business financing concept to finance my own passive investing business? I would be day trading stocks and futures and commodities inside an LLC.
Thanks, JL
ANSWER: Because the 401k small business financing concept is for those seeking to finance an existing or new business that will be offering operational services (e.g., restaurant, retail store, online store, etc.) not passive investment services such as day trading, it does no appear that you would qualify.
However, you may want to consider establishing a self-directed IRA LLC to trade equities and commodities. Under a self-directed IRA LLC, your IRA will fund a newly formed LLC of which you are listed as the manager and can therefore direct the investments.
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