Setting Up A Trust For Your Business
Trust setup for businesses is similar to trusts for families. It involves a trustee (an individual or a company) carrying on business operations for the benefit of other people (the beneficiaries). A trust is set up through a formal deed which outlines how the following trust fund will operate.
Talk to an expert at Verus Accountants and Advisors today to find the correct structures for your business, and ensure the right people are in the key positions of those entities.
How Do Trust Setups Work?
Trusts, unlike companies, are not separate legal entities. The trustee of the business trust is the legal entity that owns the business assets and enters into contracts on the trust’s behalf.
Trustees are responsible for the operation of the trust. As a result, they are legally liable for the debts of the trusts. If the trustee is a company (a corporate trustee), this can reduce liability. Trusts can be tax-effective strategies for your business, due to their flexibility in their income and asset distribution.