Roth IRA's, REI And My LLC
Lots of abbreviations in that title! 
I'm starting out in REI, really educating myself now and my goal is to make my first deal this summer. I am setting up my LLC this month and also wanted to set up a Roth for me and one for my husband, but I read on a website that I wouldn't be eligible since I have no earned income (quit my job over a yr ago to stay at home with my children and start my REI career). I've heard I can have a "spousal" IRA. What is that? Limitations? I wanted to have my husband partner up with me in my LLC thinking it might come in handy somewhere downt he road, but I guess I really need to do it now, and make sure I do this thing correctly. Is it better (or no difference) if I set up a spousal IRA or should I wait for my LLC to start paying me, then I'll be eligible for my own Roth. Am I making sense here? :-?
Thanks,
Ginnie[ Edited by godiva on Date 04/26/2004 ]
Don't hold me to it...but from my experience I think the information you had found on the IRA accounts might be incorrect. I have opened, (in the past) and then closed, and then opened again just this year ROTH IRA accounts without any consideration to my employment or lack there of. There are restrictions to dollar amount that can be contributed each year. Also, if your yearly income is over something around 100k then there are restrictions on contributing. (I am not at that level of income yet so I have not done the research to give you the details)
You might want to call a local stock broker or investment firm and ask. It would not cost anything to find out and they would be glad to let you know in the effort to get you to open the account through them.
For each year you contribute to a Roth IRA, you (or your spouse, if you file jointly) must have compensation or alimony income. If you don't have compensation or alimony income you can't contribute, even if you have other types of income. And if your compensation or alimony income is less than the maximum contribution, the amount you can contribute is reduced.
Compensation income includes amounts you receive from your employer of course, but also includes self-employment income from your own business or from a partnership that generates this type of income. There's a special rule that treats alimony income as compensation income, just for purposes of determining how much you can contribute to an IRA. That means you can contribute to an IRA if you receive taxable alimony payments, even if you don't work for a living.
Compensation income does not include investment income, pension income or non-taxable income.
godiva
No problem, create your REI business as a business, hire yourself as an employee of your REI business, now you have income... As I am not an attorney, this is not meant to be legal advise however. As mentioned above check the legalities with ant atty or CPA or other professional. Good luck.