Posted June 11, 2024 by James Billings
Introduction: The Importance of Privacy in Business Trusts
Today, we are discussing essential strategies for your business trust to ensure the privacy our clients seek when setting up their trusts.
Naming Your Business Trust: Specific vs. Vague
How to Choose a Name for Your Trust
The naming of your business trust can vary from very specific names like “Williams Family Investment Trust” to more ambiguous ones such as “Fideicomisia XXIII Business Trust.” The choice depends on your privacy goals and whether you aim for visibility or discretion.
Addressing Privacy: What Address to Use?
Securing Privacy Through Address Selection
Choosing the right address for your business trust is crucial for privacy. While some opt for their home or business addresses, a business address or a secure post office box is recommended to maintain privacy.
Navigating Legal Requirements: Laws and Domicile
Understanding Legal Frameworks and Domicile Choices
It’s important to consider the laws and domicile for your trust. For example, you might organize your trust under Massachusetts law but domicile it in Florida to benefit from tax advantages. We offer strategies to help you decide what’s best for your situation.
Engaging with Your Business Trust: Who Participates?
Roles and Responsibilities within a Business Trust
A business trust requires at least two different legal entities: a trustee and a beneficiary. While you can serve in these roles in different legal capacities, they must be distinct to uphold the trust’s validity.
Operational Essentials: Obtaining an EIN
The Process of Acquiring an EIN for Your Trust
To conduct banking, your business trust needs an Employer Identification Number (EIN). This involves answering several key questions about the trust’s responsible party, address, and more, which can be done online, by mail, or fax.
Managing Trust Assets: What Goes In and What Stays Out
Strategizing Asset Protection within Your Trust
Careful consideration is needed to determine which assets to include in your business trust. High-risk assets should be kept outside to prevent potential liabilities. Typically, a business trust should only contain bank accounts and contracts.
Integrating Existing Businesses with Your Trust
How to Combine Corporations or LLCs with Your Business Trust
Existing business structures like corporations or LLCs can be strategically integrated with your business trust, each serving different purposes to optimize asset protection and privacy.
Conclusion: Learn More and Get Expert Advice
We are here to assist with all your business trust needs.
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If you have any questions, please contact James Billings, founder and owner of TrustArte, at james@trustarte.com or 619-537-8625. Visit my YouTube channel for video content.