Agenda

When should a business trust be your entity of choice?

A business trust is not a new form of entity; however, it has evolved over the years. Business trusts have been around since the 19th century as a creature of both common law and statute. A business trust is commonly described as an unincorporated business organization by which property is to be held and managed by trustees for the benefit of beneficial interest holders. Business trusts originated as a method for holding real property in certain states. Through the years, business trusts have been used for REITs, mutual funds and for asset protection purposes. However, outside of these uses, business trusts have not generally been included in the “choice of entity” analysis when new operating businesses or family-owned entities are formed. Because of changes in recent years to business trust statutes and to the tax treatment of business trusts, a business trust should now be considered as an entity of choice by many.

This webinar focuses on the tax and business characteristics of business trusts and how they fit into the menu of entity choices that businesses have on formation.

What will be covered:

This webinar provides participants with a conceptual understanding and practical application of the following:

1. Overview of Business Trusts 
    A. Origin 
    B. Forms of Business Trusts 
    C. Historical Uses of Business Trusts 
    D. Recent Changes
2. Income Tax Treatment 
    A. Classification of Trusts That Operate a Trade or Business as a Partnership or a Disregarded Entity (like an LLC) 
    B. Classification of Investment Trusts as Either Business Entities or Tax “Trusts”
3. Governance Issues
4. Asset Protection Characteristics 
    A. Treatment of Judgment Creditors 
    B. Treatment in Bankruptcy
5. Uses of Business Trusts 
    A. Real Estate Ownership (including REITs) 
    B. Family Entities 
    C. Closely-Held Businesses 
    D. Investment Entities