If I transfer my LLC into a trust do I need another EIN?
Good afternoon, if I create a trust do I have to go to the IRS and get a trust number instead of using the EIN after the trust has ownership of the LLC?
24
9
Solved
The LLC’s EIN is still needed—it’s the LLC’s number. Each entity (LLC and trust) needs its own EIN. That separation creates the two layers between the entities.
0
LLC Operating Agreement
Create Document
Full Conversation
Good afternoon, if I create a trust do I have to go to the IRS and get a trust number instead of using the EIN after the trust has ownership of the LLC?
Good afternoon! Have you already created the trust?
I’m in the process.
Are you looking to transfer ownership of an LLC to this trust?
Yes, I am.
Is there anything else the lawyer should know before I connect you?
No, that’s all.
Hi there! My name is Liz and I’ve been an attorney for more than a decade, and I am here to assist with your legal concerns. So I can best help—does the trust have its own EIN, or does the LLC only have an EIN?
The LLC only has an EIN.
Thank you for clarifying. A trust does require its own EIN because each entity has its own tax liability. Would you be the grantor or the trustee?
Is it possible to be both? I want my trust to own 100% of my LLC and I just want to manage it.
You can indeed be both—it just has to be clear in the trust document. The trust can own the LLC.
After I get the EIN I can then go to the bank to open an account, correct? I believe they ask for my Social, but I don’t want any connections.
That’s correct. The trust’s EIN will function much the same way as your Social, but it’s tied to the trust.
And I can throw away the one I have now, right? Or will I need to use it for anything?
The LLC’s EIN is still needed—it’s the LLC’s number. Each entity (LLC and trust) needs its own EIN. That separation creates the two layers between the entities.
Is there a way I can set up a payment plan with you so when I do need lawyer services I’ll already have a balance? Or how can I use you for future services?
My apologies—we can’t be hired here. But your state bar may have a referral service for local attorneys.
Ahh, got it. Thank you so much for your help. Is there a specific way to type up the trust document?
You’re very welcome. You can use templates, or have a lawyer draft the trust for you.
One more question—once the trust is established, I have to edit my operating agreement, correct? In what part do I put that the trust owns 100% of the LLC?
Yes—the trust agreement would state it owns the LLC. Then, in the operating agreement under “members,” the trust would be listed as the 100% ownership member.
You’re the bomb, Elizabeth. Thank you—have a beautiful rest of your day.
You too!
Elizabeth
40,904 satisfied customers
5 lawyers online now
19
6
Answered 3 days ago
Disclaimer
By messaging AskaLawyer.com, you agree to our Terms and have read our Privacy Policy.
The information provided on AskaLawyer.com is for general informational purposes only and does not constitute legal advice. While we strive to ensure the accuracy and timeliness of the information presented, we make no guarantees regarding its completeness or applicability to your specific circumstances.
Use of this website does not create an attorney-client relationship between you and AskaLawyer.com or any of its attorneys. Communications through this website, including any responses from attorneys, are not privileged or confidential. For advice tailored to your individual situation, we recommend consulting a licensed attorney in your jurisdiction.
AskaLawyer.com disclaims any liability for actions taken or not taken based on the content of this site. We are not responsible for any third-party content that may be accessed through this website. Reliance on any information provided herein is solely at your own risk.
