I have a single member LLC and I will also creat a personal trust for my family. Can I put the LLC into the trust? (State of California)
2007-02-21 09:09:58 · 3 answers · asked by crimsongraycoug 1 in Business & Finance ➔ Corporations
In my state (TX) you can and I suspect you can in CA also. But if this deal is important enough to have an LLC and have a trust as well, it is worth asking a local attorney for guidance in this deal.
Good Luck
Dana B.
2007-02-21 12:04:56 · answer #1 · answered by planningresult 4 · 0⤊ 0⤋
The simple answer is yes you can.... I am assuming you are referring to a revocable living trust (there are many different types of trusts, and it complicates the answer if we are referring to certain irrevocable trusts). You need to make sure the trust is drafted correctly to not adversly affect member shares or rights (I assume you are dividing up the company after your death). There are a number of tax issues invovled with what you are describing as well as issues with control of the company. You really should be seeking an attorney with business succession/business legacy planning background (requires trust and estate law, tax law and business law). Simply put this is not something you should be doing yourself.
2007-02-26 09:43:42 · answer #2 · answered by Fulcrum777 2 · 0⤊ 0⤋
once you formed the only member llc and utilized to the irs for an SS-4, you mandatory to tutor the way you wanted to be taxed. in case you probably did not factor out that you wanted to be taxed as a employer, then you'd be taxed as someone. so a recommendations as employer vs. individual is going, a employer (c-corp) has it really is taxes break away the owner. The c-corp receives the earnings or loss, and is taxed on it. s-corp has the earnings or loss and different earnings and/or deduction go by to the owner(s), and definitely someone comments the earnings/loss on his 1040.
2016-12-04 11:38:16 · answer #3 · answered by Anonymous · 0⤊ 0⤋