LLC

Faced with the risk of lawsuits, the need to interact with other institutions yet remain separate, the policy of empowering many individuals rather than central control it is crucial that you do not own real property in your own name.

The Title Holding Trust or Land Trust is a device for acquiring, holding, managing and selling real estate for a purpose.

Title to real estate is held by the Trustee (Exeter Fiduciary Services, LLC) pursuant to a California Title Holding Trust or Florida Land Trust Agreement etc.. However, the use and enjoyment of the property, or beneficial use, is retained by the beneficiary (owner) of the Title Holding Trust or Land Trust. This is where the importance of Christ's purpose plays an important role.

There are several ways in which an individual can hold property. These include as a corporation, limited partnership, limited liability company (“LLC”), trust, and many others.

While there are many options, when it comes to real estate investment, LLCs are the preferred entity by most investors, attorneys and accountants. LLCs appear to be the best of all worlds for holding investment real estate. Unlike limited partnerships, LLCs do not require a general partner who is exposed to liability. Instead, all LLC owners -- called members -- have complete limited liability protection. LLCs are also superior to C corporations because LLCs avoid the double taxation of corporations, yet retain complete limited liability for all members. Furthermore, LLC’s are rather cheap and easy to form.

Having a separate LLC own each separate property prevents "spillover" liability from one property to another.

An LLC is a business entity created under state law by filing articles of organization with the state secretary of state. Although an LLC is similar to a corporation and is designed as a vehicle for operating a business, operating an LLC requires far fewer legal formalities (such as the appointment of a board of directors) than a corporation does. In every state, a single member may form an LLC and then gift or sell property to it. You may gift the same type of property to an LLC that you can gift to an irrevocable trust.   As stated a LLC does not need to be organized for profit and is not a corporation. Also an LLC may be used concurrently with a trust to provide the best protection and estate treatment   One theory is that "the owner should hold the investment property in a single member LLC, with the living trust as the sole member of the LLC."  In this case  the trust is the owner of the company and holds all of the interests of the LLC. This form of ownership gives an added layer of protection from the LLC as well as the additional estate planning benefits of a trust.   In another scenario assets are owned by a Limited Liability Company and in turn the shares of the membership units of the LLC are owned by an irrevocable trust. Friends of His Church Trust was written as an irrevocable trust to empower the people so that they may empower the ministers through faith. I believe a trust can hold an LLC or multiple LLCs.   The difference between revocable and irrevocable is in the former the Grantor, the Trustee, and the Beneficiary are generally the same person. The Grantor did not give-up control of the asset(s) entirely.   In the latter the Grantor no longer owns the assets. Assets have been transferred to the control of the Trustee who has a fiduciary duty to manage the assets for the benefit of all beneficiaries, which may include the Grantor. The trustee must demonstrate No private advantage and in the best interests of beneficiaries and they must act prudently and will be liable for breach of trust if, by failing to exercise proper care, the trust fund suffers loss. Failure to exercise the requisite level of care will constitute a breach of trust for which the trustee will be liable to compensate the beneficiaries. This duty can extend to supervising the activities of a company in which the trustees hold a controlling interest.   An irrevocable trust can be treated as a simple, complex, or grantor trust, depending on the powers listed in the trust instrument. A revocable trust may be revoked and is considered a grantor trust . State law and the trust instrument establish whether a trust is revocable or irrevocable. If the trust instrument is silent on revocability, then most states consider the trust revocable.   So with that in mind there is some issue with the structure of a trust and its use of an LLC but there are also advantages.

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