Every so often a client asks me, “Can I fund/purchase/own my business through an IRA.” My general answer is don’t do this! You may be able to do it legally, but there are so many gotchas that it’s rarely worth the aggravation.
A taxpayer tried to own his closely-held C-Corporation through his IRA. The results weren’t pretty. Joe Kristan has the details on what went wrong and the troubles the taxpayer now faces.