Video instructions and help with filling out and completing Where Form 2220 Trusts

Instructions and Help about Where Form 2220 Trusts

This is the secured entreprenuers shell and I'm your host or add a welcome and thank you for joining me here for the 10th episode of the secured entrepreneur show today I'm going to talk to you about business trusts versus corporations I'm seeing more clients who are choosing to go the business trust route these are entrepreneurs who would have otherwise created an S or C corporation however have found that the trust structure provides way more of the protections that they're looking for regarding their personal and business assets as well as investments I'm Aurora de protecting your business starts before you open for business I'm helping more entrepreneurs create business trusts because they're attracted to the privacy that the entity affords them understanding the true power of this entity they appreciate not having to file anything with the Secretary of State unless of course they're servicing the public with something like insurance or something in the financial industry like banking etc for the most part the trust happens to be a private arrangement between the parties who are involved it gains its status via of voluntary action by these individuals so there's no need to obtain a charter from the state given this legal entity recognition there are no Articles of Incorporation no annual reporting no initial court reports to file with the state for a fee that could prove to be rather expensive anyone who has ever started a corporation is well aware of this process now our business Trust is an unincorporated business organization created by a legal document it's better known as a declaration of trust and it's used in place of a corporation or partners ship for the transaction of various kinds of business with limited liability very much like a traditional trust the trustees have legal rights they have legal title to the Trust property to administer for the advantage of its beneficiaries who do hold equitable title and equitable rights to set property the declaration of the trust specifies the terms is specifies the duration also powers and duties of the trustees as well as the interests of the beneficiaries the beneficiaries do receive certificates of beneficial interest as evidence of their interest in the trust which happens to be transferable the property of a business trust is managed and controlled by trustees who have a fiduciary duty to the beneficiaries to act in their best interests the beneficiaries according to their interest in the trust share profits and losses from the use and/or investment of the Trust property there's so much to learn about setting up and operating this type of entity however the main things that I caution clients about is understanding their state's law regarding transactions and the limited liability of a trustee trustees must have provisions in their contracts to indemnify them as they can be liable to third parties who do business with the trust regarding lawsuits again trustees should make sure that they have indemnity from trust property as well as from the beneficiaries simply because the trustee has the right to sue and can also be sue as the individual holding legal title to Trust property all right I'm ready to get into the next episode so please feel free to leave your comments and questions and subscribe here on iTunes and visit me or or a day on Google+ at a rotate on Twitter around in consulting on Facebook or stop by WWE or a consulting com au r o ra h de y consulting calm until next time with a roar day you are secured you