A trust could own a business, like an LLC, but a trust can't really manage a business because it isn't a person capable of taking actions on their own. Rather, it is a legal fictional entity governed by state trust laws and the terms outlined in the trust instrument.
The trustee of the trust could manage any assets in the trust itself; if the trust owned the business, it could be managed by the trustee.
So if you created a business entity, like an LLC, you could list the trust as a member owner of the LLC, and then the trustee of the trust would be in charge of managing the business.
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Can I create my business with the trust managing it?
I understand you're interested in creating a business with a trust managing it. Are you looking to establish a trust to run the operations of your business?
I already have the trust in place. I want to create a business but have the trust over it.
Have you already set up the trust or are you in the process of establishing it?
Yes.
Is there anything else the Corporate Lawyer should know before I connect you?
That's it.
Hello and welcome to the site! My name is Barrister and I am a licensed attorney, and I am here to help with your situation.
A trust could own a business, like an LLC, but a trust can't really manage a business because it isn't a person capable of taking actions on their own. Rather, it is a legal fictional entity governed by state trust laws and the terms outlined in the trust instrument.
The trustee of the trust could manage any assets in the trust itself; if the trust owned the business, it could be managed by the trustee.
So if you created a business entity, like an LLC, you could list the trust as a member owner of the LLC, and then the trustee of the trust would be in charge of managing the business.
Gotcha! So I already have a trust in place and I want to create a new business, should I put the Trust as the managing member?
Yes, under the trustee's name... So the member would be "The Trust's Name, Trustee's Name, Trustee".
Got it! Thank you for your time. Have a great rest of your day!
You are very welcome. Glad I could help. It was my pleasure to work with you and help with your question.
