If you’re setting up an LLC in Florida—or already have one—you may be wondering:
“Can a trust own an LLC in Florida?”
Yes, a trust can legally own an LLC in Florida.
In fact, this is a common and smart strategy for asset protection, estate planning, and privacy.
This guide explains how trusts can own LLCs, why it’s beneficial, and what you need to do to stay compliant in Florida.
Can a Trust Legally Own an LLC in Florida?
Yes. Florida law allows revocable and irrevocable trusts to hold membership interests (ownership) in an LLC.
That means the trust becomes the member or owner, and the trustee manages that ownership according to the terms of the trust.
Whether you’re forming a new LLC or transferring an existing one, a trust can legally be named as a member.
Why Put an LLC into a Trust?
There are several strategic reasons to transfer LLC ownership into a trust:
1. Estate Planning
When an LLC is owned by a trust, its assets bypass probate upon the death of the grantor. This ensures:
- Faster transfer to beneficiaries
- Lower legal fees
- More privacy
2. Asset Protection
An irrevocable trust can help shield assets from:
- Creditors
- Lawsuits
- Business liabilities
3. Privacy
Trusts don’t always have to be publicly recorded like individual owners. This keeps your personal name off the public record in some cases.
4. Business Continuity
Having a trust own the LLC ensures a clear succession plan for your business, avoiding disruption if the owner dies or becomes incapacitated.
How to Make a Trust the Owner of an LLC in Florida
For a New LLC:
- Form the Trust First (revocable or irrevocable)
- Name the trust as the member on your Articles of Organization
- List the trustee as the authorized signatory
- Use the trust’s name (e.g., “The Smith Family Trust”) on all business documents
Always keep a copy of the trust document and trustee certification for state and bank records.
For an Existing LLC:
To transfer your existing Florida LLC into a trust:
- Draft an Assignment of Membership Interest from yourself to the trust
- Update the Operating Agreement to reflect the new member (the trust)
- Notify the Florida Division of Corporations if needed (some states don’t require a new filing)
- Update IRS and tax records, including EIN info
- Inform your bank and business partners
Consult a business attorney or estate planner to ensure full compliance.
Important Legal Considerations
- The trustee (not the grantor or beneficiaries) will have voting rights in the LLC.
- If you use a revocable living trust, you can retain control while alive and transfer it seamlessly when you pass.
- You must still maintain LLC compliance—including annual reports and proper documentation in Florida.
Does a Trust-Owned LLC Need a Separate EIN?
Yes—if the LLC is taxed as a partnership or corporation, it needs its own EIN.
If it’s a single-member LLC (even if the trust is the member), it may be considered disregarded for federal tax purposes, depending on IRS classification.
Always consult a tax advisor before filing.
Example Use Case
John, a Florida-based business owner, wants to ensure his family receives his rental income properties without going through probate. He creates a revocable trust, transfers ownership of his real estate LLC into the trust, and names his children as beneficiaries.
Result:
- No probate
- Continuous rental income for the family
- Seamless legal transition upon his passing
Final Thoughts
Yes, a trust can own an LLC in Florida, and doing so can provide powerful benefits in terms of:
- Estate planning
- Asset protection
- Business continuity
- Legal efficiency
Whether you’re starting a new LLC or already have one, transferring it into a trust is a move worth considering—especially if you’re planning for the long term.
