Remember to keep your IRA separate from any conflicts of interests, just as you would from any family member. Your IRA and your retirement account should benefit from investments and business activity, not you.
Un-adopted children, aunts, uncles, nieces, nephews, cousins, in-laws, brothers, sisters, and non-blood related family friends.
If you or disqualified persons for your IRA own over 50% of a company, the CEO, offices/directors, and highly compensated employees can all be disqualified.
If other disqualified people, such as your children or spouse, own parts of the company, this counts in addition to your ownership towards the 50% limit.
For example, if you owned 15% of a friends company, but your children owned 40%, that company and certain key persons would be disqualified from doing business with your IRA.
Generally, the laws are designed so that a person cannot attempt to avoid or unfairly reduce generational transfer or business owning taxes.
You can aim to make an investment with someone who is not a disqualified person, or search for a similar investment opportunity that is free of from a disqualified person's involvement. Doing business with a disqualified person puts your IRA at risk of a forced distribution and other penalties by the IRS.