Nevada Small Business Consulting can assist you in Setting Up A Living Trust Be A Member of an LLC. An LLC, or limited liability company, is a business that benefits from limited liability status, similar to a corporation with a higher level of pliability in management and taxation. A living trust can be defined as an arrangement where as an individual understood as a grantor entrusts a trustee to direct assets on behalf of the grantor’s beneficiary, while the grantor continues to live. In many instances, these two entities can be utilized in unison to accomplish specific goals.
Many of my clients request information regarding whether the Limited Liability Company (LLC) or the Living Trust will offer greater protection for their assets. The short answer is that the LLC is established to offer protection for personal assets from potential lawsuits, while the Living Trust works to protect your property from probate expenditures and inheritance taxes in the event of passing on, and also will put a stop to court control of your assets if the event that you become indisposed.
Integrating a living trust with an LLC permits you to operate a company and use the benefit of the flexibility trust allows simultaneously. When you place your LLC membership interest in trust, your trustee can work for your beneficiaries after you pass on, but will be confined to the terms of the trust contract that you established. Installments to your beneficiaries can resume after you pass on, which gives your beneficiaries a existing part of the LLC business. If the trust is irreversible when you pass on, it will not be contributed as part of your estate for estate tax purposes. Your creditors or your beneficiaries’ creditors can access either LLC assets or trust assets until they are dispensed out of the trust.
You can possess a family trust and an LLC simultaneously, however because they’re established for specific reasons, it is imperative to understand if or why you require each one. In some cases, you may benefit by combining a family trust with an LLC as part of your estate plan. Nevada Small Business Consulting can work with you to determine the best coarse of action to take in regards setting up an LLC or Living Trust. Contact us today at (702) 758-4691 to schedule a consultation! You can click the following link to view our 5-star Google Reviews.