LLC or Trust?
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LLC or Trust?
I am thinking of setting up an LLC mainly as a vehicle to my business as a writer publisher. I am not making much but enough every year to consider the fact that this money would keep coming even after my demise. My daughter is 11 and my wife is my CPA. I have no attorney at the moment and frankly I cannot afford their fees. Much of what I need I can do via nolo or a paralegal but I would pay someone for some clear and concise practical advise pertaining my individual situation. So what is better a LLC or a Trust for a small operator like me? I just want to maintain continual flow of income.
Asked on June 5, 2012 under Estate Planning, California
FreeAdvice Contributing Attorney / FreeAdvice Contributing Attorney
Answered 9 years ago | Contributor
First, a trust for all intents and purposes is an estate planning mechanism or a mechanism designed to hold assets of a person who is a minor or simply not competent to take care of his or her affairs.
For business purposes, most people operate under a limited liability company of a corporation (S or a C corporation).
As to whether you should have a limited liability company or a corporation for your vehicle to operate your business, you should consult with your accountant for his or her recommendation.