Q: What is the best way for a Trust to own a corporation & can that corporation be an LLC or S corp?
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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.
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