How Does One Operate A Business with A Trust - Can Trust Own Business
A Bulletproof Trust can own the business, either as majority stockholder (C-Corporation only) or as owner (LLC). To transfer the business into the trust, simply sell the asset (company and equipment) for $1. The alternative is to have the Bulletproof Trust hold a UCC-1 Lien over the business, so if there were ever a lawsuit - the trust would liquidate all assets to obtain its debt. This follows the Debtor's Rule: First in line, first to be paid. Meaning that anything leftover after the trust liquidates the businesses assets, then goes to pay off any other creditors/lawsuits next in line (usually leaving nothing for them).
NOTE: If having a license is a "MUST" (contractor, broker, brewery, etc.), we would hold the PUBLIC COMPANY in an LLC or C-Corp (due to receiving the privilege of a license), then one can pay the trust like an “independent contractor”, thereby allowing reporting of taxes for one's business BUT often with little to no income leftover, giving one the best tax rates.
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