What is and how do you establish a simple trust?
Full Question:
Answer:
A limited liability company (LLC) is a separate legal entity that can conduct business just like a corporation with many of the advantages of a partnership. It is taxed as a partnership. Its owners are called members and receive income from the LLC just as a partner would. There is no tax on the LLC entity itself. The members are not personally liable for the debts and obligations of the entity like partners would be. Basically, an LLC combines the tax advantages of a partnership with the limited liability feature of a corporation.
An LLC is formed by filing articles of organization with the secretary of state in the same type manner that articles of incorporation are filed. The articles must contain the name, purpose, duration, registered agent, and principle office of the LLC. The name of the LLC must contain the words Limited Liability Company or LLC.;An LLC is a separate legal entity like a corporation.
Management of an LLC is vested in its members. An operating agreement is executed by the members and operates much the same way a partnership agreement operates.Profits and losses are shared according to the terms of the operating agreement.
A revocable or living trust is a written document which becomes effective while you are living, unlike a will which takes effect after your death. A trust can be set up to manage your assets for your benefit during your lifetime, or in the event of your illness or incapacity. After your death, the trust document can provide for the distribution of any remaining assets to those persons or entities you have chosen or provide for their continued management by a trustee for many years, with ultimate distribution as you direct. A revocable trust is a private document the contents of which are known only by you and the person you have chosen as your Trustee. Such a trust is unlike a will which if probated requires the list of your assets and their values to be public record at the courthouse. When a revocable trust is fully funded, by conveying all of your assets into your trust in your lifetime, no probate of your estate is required. You may amend or revoke your revocable trust during your lifetime so long as you retain the capability to do so.
Forms on USLF Website:
Living Trusts - Oklahoma
