Can a Trust Own an LLC in Florida?

Yes, a trust can own an LLC in Florida. Under Florida law, trusts can serve as members or owners of a Limited Liability Company (LLC). This structure is often used for estate planning, asset protection, and privacy maintenance.

When a trust owns an LLC, the trust becomes a member, with the trustee managing its interest in the LLC. The trust must be designated as the owner in the LLC’s Articles of Organization (or Certificate of Formation) and referenced in the LLC’s operating agreement to establish this arrangement.

This approach offers significant advantages, such as streamlining the transfer of business assets to heirs, shielding assets from potential creditors, and preserving confidentiality. However, forming a trust-owned LLC requires careful consideration of legal and tax implications.

It is advisable to consult a business attorney with expertise in estate planning and business law to ensure the trust and LLC are correctly structured, compliant with Florida statutes, and aligned with the client’s objectives and business law. An experienced attorney can also help mitigate risks, such as unintended tax liabilities or disputes over the trust’s validity. Proper legal guidance ensures the trust-owned LLC fulfills its intended purpose while adhering to all applicable laws.