I have just registered my Australian based company with Florida state as LLC. My company is trustee for my family trust (i.e probably called simple trust in US). I would like to acquire the properties under my Trust name, therefore
1) should I also need to registered my Trust with Florida state as well? (or just register my company name is sufficient?)
2) should I apply for EIN number for my Trust instead of my company?
3) Is it better to buy properties under LLC rather Trust?
That's is the structure I have set up in Australia. Such that all income will need to distribute to the beneficiaries and tax at their own tax bracket. So my company don't have a tax number (i.e EIN) but my Trust do.
Can anyone please shine some lights on this topic for me.
I would use the LLC to conduct business and hold assets. Holding assets in the trust would open the trust up to liability. Under this scenario the trust will need to get an EIN in addition to the LLC since the LLC will be a pass through ie disregarded entity.
Hao -
I am not familiar with business trust laws in Florida, but the United States Internal Revenue Service looks closely at business trusts for incidents of possible tax evasion. I would recommend that you speak with a small business accountant in Florida.
You can read more about this on IRS.gov: http://www.irs.gov/compliance/enforcement/article/0,,id=105822,00.html
jbeidle | Contributor | 8/25/2010 - 7:23 am
NicoleD | Former Moderator | 8/24/2010 - 9:27 am
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