Business Trust Organization

Privacy is defined as “A state in which one is not observed, disturbed by other people or in legal terms is the state of being free from public attention.”

Are you now ready to formally organize your business? You have several choices and many people think about a corporation or L.L.C. But there’s a superior alternative, the Business Trust.

Only the Business Trust gives you anonymity for the business itself. You can get all of the tax benefits of a corporation and liability protections of an L.L.C. You also avoid the hassle of government fees and filings, resident agents, and most of all – unlisted status and Privacy.

Just like a corporation,  you are not personally responsible for liabilities of the business trust. You and your other personal assets are shielded, as liability is contained within the business trust.

There’s no public record of your personal name, address, Trustees, or of the business trust itself which affords you privacy that no corporation can match.

You can immediately conduct business in all 49 states and internationally as well.

Corps and L.L.Cs must pay setup fees to the Secretary of State before than can legally conduct business. A business Trust requires no annual fees paid to the Secretary of State or any other government agency.

This is not business as usual. The advantages of a business trust far exceed the benefits of a corporation.

1. Because the corporation is created by the state as a privilege, corporate benefits may be diminished, limited or eliminated by the state government, whereas business trusts, or unincorporated business organization’s (Business Trust) existence and operation are controlled by its contract, not by state corporation law. 

2. The state charges incorporation fees and ongoing annual fees. The Business Trust, as a privately created entity, does not have these expenses.

3. A corporation (expect for a Subchapter S corporation that is taxed as a partnership) can be subject to double taxation (income taxes on corporate profits (unless zeroed out), then income taxes on dividends paid now or in the future from those profits to shareholders). In contrast, a Business Trust does not pay income taxes on its profits if it must distribute all of its net income to its beneficiaries – thereby escaping taxation as a simple trust.

4. Capital gains taxes may be entirely avoided by a Business Trust that sells assets at a profit if the trust contract specifies that all net trust income is to be distributed annually to the certificate holders (beneficiaries) who will be the ones to report the capital gains as taxable income and pay any due taxes.

5. Corporate officers and directors (and sometimes shareholder names) and financial dealings are a matter of public record and detailed annual reports. Business Trust affairs are private and not a matter of public record.

6. The avoidance of probate administration is one major advantage of a Business Trust. If one’s assets are all owned by one or more trusts, at one’s death, there are no assets in the deceased person’s name to go through probate. The trustees and successor beneficiaries continue the uninterrupted administration and benefit of the trust assets and income.

7. Because the Business Trust assets do not go through probate, a Business Trust cannot be challenged by persons falsely claiming to be heirs or creditors of the deceased person.

8. Assets can often be protected against creditors while beneficiaries are alive because the Business Trust holds legal title to the trust assets with the result that beneficiaries cannot have their shares of capital units attached by creditors if the trust has valid spendthrift clauses.

9. Like the initial funding of a new corporation, there is no income or transfer (gift) tax to put initial assets into a business trust (structured to be like a corporation in the initial funding process) because the transferor of the assets receives back a proportionate share of the Units of Beneficial Interest (Trust Certificates).

10. Whereas corporate stock owned by a stockholder is liable for death taxes (to the extent the value exceeds exemptions and deductions), the assets to a properly structured, funded and administered asset preservation trust will not be part of the grantor’s estate who originally funded the trust when the trustor/grantor dies.

If you would like more information please click on the chat box at the bottom right side of the page and we will help you.

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