Washington, DC asked in Estate Planning, Business Formation and Business Law for Maryland

Q: How do I write up a Bussiness trust 12-2004

I wanna write up a Unicorporated Bussiness trust

1 Lawyer Answer
Cedulie Renee Laumann
Cedulie Renee Laumann
  • Estate Planning Lawyer
  • Crownsville, MD
  • Licensed in Maryland

A: The first question any business attorney will likely ask is: what are you looking to accomplish? A business trust is an old but relatively unusual way to conduct business, except perhaps in the case of real estate held in a grantor's revocable living trust. The question doesn't give any facts as to why an "unincorporated business trust" is desired. Most attorneys would ask whether the Grantor determined the tax liability for conducting a business in a trust vs. through a standard or bypass entity. It would be essential to consult with a tax professional -- income earned by certain trusts may be subject to a higher tax rate (e.g., based on 2018 tables a married individual earning $150,000 might have a federal income tax rate of 24% while a trust earning the same amount might have an income tax rate of 37%)

At its most basic, every Trust will need a Trust instrument, identified Trustee(s) and beneficiary(ies). A skilled estates/trusts and/or business attorney can assist in drawing up a trust instrument in a way that accomplishes your goals or perhaps discuss other business entities. Your post notes a DC location and MD business -- there are many business lawyers in the DC metro area barred in this state who could sit down with you and discuss your business plans and options to accomplish your goals.

While not legal advice, I hope that this general information helps.

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