Can A Trust Be A Corporate Officer

Can A Trust Be A Corporate Officer

In the United States, state corporation law uniformly provides that only natural [living] persons may serve as directors of corporations, therefore a trust cannot be a corporate officer. Further, a trust can hold stock for a C-Corporation, but there are limitation on what type of trust can hold stock for an S-Corporation (i.e. only grantor trusts, testamentary trusts, voting trusts, ESBTs, and qualified trusts).

    • Related Articles

    • Can a Trust Start a C-Corporation or S-Corporation

      Yes, a trust (with an EIN) can start a C-Corporation, but not an S-Corporation. S-Corporations do not allow trusts these same rights. The trust cannot serve because only a natural [living] person can serve as a corporate officer. Although a private ...

    • How Does One Transfer Assets Into A Corporation (S-Corp or C-Corp)

      One would create a promissory note between one's self personally and the corporation. Then create a payment schedule and an interest rate that is found in the real world (5-10%) and make monthly payments of interest and maybe principal according to ...

    • Is A Corporation Necessary (or) Is An Operating Trust Better Than A C-Corp

      A C-Corp is not necessary, but serves in lieu of an Operating Trust. A C-Corp is highly recommended for students with a business that earns $100,000+ a year. The upsides to a C-Corp is the ability to have a CPA file any taxes that may occur for a ...

    • Should One Turn an LLC Into A C-Corp

      A C-Corp offers much better protections over an LLC (LIMITED Liability Corporation); the primary word being "limited" which declares it to not be fully shielded from larger lawsuits. There is still a liability if a lawsuit goes over ~$250,000 ...

    • Can Operating Trust Take Place of C-Corp, LLC or S-Corp

      Yes, Operating Trusts can take the place of a C-Corp, S-Corp or an LLC in a trust web structure, and vice-versa.