Q: What is the best way for a Trust to own a corporation & can that corporation be an LLC or S corp?
A: In New York, a trust can own a corporation through strategies such as creating a holding company or a subsidiary structure. In a holding company approach, the trust establishes a corporation that owns shares of another corporation (LLC or S corp). Alternatively, a subsidiary structure involves the trust creating a subsidiary corporation owned entirely by the trust. Both approaches aim to provide asset protection and separation between the trust's assets and the corporation's activities. It's important to carefully draft operating agreements or bylaws to outline ownership rights and decision-making processes.
Justia Ask a Lawyer is a forum for consumers to get answers to basic legal questions. Any information sent through Justia Ask a Lawyer is not secure and is done so on a non-confidential basis only.
The use of this website to ask questions or receive answers does not create an attorney–client relationship between you and Justia, or between you and any attorney who receives your information or responds to your questions, nor is it intended to create such a relationship. Additionally, no responses on this forum constitute legal advice, which must be tailored to the specific circumstances of each case. You should not act upon information provided in Justia Ask a Lawyer without seeking professional counsel from an attorney admitted or authorized to practice in your jurisdiction. Justia assumes no responsibility to any person who relies on information contained on or received through this site and disclaims all liability in respect to such information.
Justia cannot guarantee that the information on this website (including any legal information provided by an attorney through this service) is accurate, complete, or up-to-date. While we intend to make every attempt to keep the information on this site current, the owners of and contributors to this site make no claims, promises or guarantees about the accuracy, completeness or adequacy of the information contained in or linked to from this site.
