Are there advantages in setting up a trust vs and LLC in SC?

Are there advantages in setting up a trust vs and LLC in SC?

Vendor · Charlotte, NC · Member since 2015 · 18 posts · 3 votes

What are the advantages in setting up a property trust vs. an LLC for South Carolina real estate?

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  • Rental Property Investor · Rockford, IL · Member since 2014 · 4k+ posts · 2k+ votes
    9y

    Trust, S-Corp and LLC(s) are all elements you'll want to have in your business entity structure.

    The trust replaces you as the owner of the other entities - none of them should be owned by a human person. This provides isolation to protect your personal estate / possessions and is your first layer of protection.

    The S-Corp is your operating company. Money flows through it. You become it's employee so you are not self-employed. It is owned by the trust.

    The LLC(s) are the holding companies for the rental properties. It is / they are owned by the S-Corp and the trust.

    Control everything, own nothing.

  • Conway, SC · Member since 2012 · 114 posts · 44 votes
    9y
    Seems like a good plan to me
  • Vendor · Charlotte, NC · Member since 2015 · 18 posts · 3 votes
    9y

    @David Dachtera Thanks for clarifying that for me. 

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