Why Small Business Owners Need Living Trust
If you own a California small business, living trust is essential for:
- Business continuity: If you die, successor trustee runs business immediately (no probate freeze)
- Avoid probate: Business doesn't get stuck in 12-18 month probate
- Succession planning: Specify who gets business (kids, partner, key employee)
- Incapacity protection: If you become unable to work, successor manages business
- Tax benefits: Avoid business interruption, preserve value
Can You Put LLC in Living Trust California?
YES. You can transfer LLC ownership to your living trust:
| Business Type | Can Go in Trust? | How to Transfer |
|---|
| LLC (Single-Member) | ✓ YES | Assignment of membership interest |
| LLC (Multi-Member) | ✓ YES (check operating agreement) | Assignment + operating agreement amendment |
| S Corporation | ✓ YES | Stock transfer to trust |
| C Corporation | ✓ YES | Stock transfer to trust |
| Sole Proprietorship | ✓ YES | Transfer business assets to trust |
| Partnership | ⚠ COMPLEX | Check partnership agreement first |
Small Business Living Trust Benefits
1. Business Continuity (Avoid 12-18 Month Freeze)
Without trust: Business stuck in probate. Can't make decisions, sign contracts, access bank accounts for 12-18 months.
With trust: Successor trustee immediately runs business. No interruption.
2. Succession Planning
You control who gets your business:
- Leave to one child (who works in business)
- Split equally among all children
- Leave to key employee or business partner
- Sell business and distribute proceeds
3. Tax Benefits
- LLC/S-corp tax treatment unchanged (trust is disregarded entity)
- Avoid business value loss from probate interruption
- Preserve going concern value
Self-Employed Living Trust California
If you're self-employed (freelancer, consultant, contractor), living trust protects:
- Business bank accounts
- Client contracts
- Equipment and assets
- Intellectual property
- Accounts receivable
🏆 Best for Business Owners: Living Trust California
Attorney-reviewed business owner trust for $150:
- ✓ LLC/S-corp transfer guidance
- ✓ Business succession provisions
- ✓ Incapacity protection for business
- ✓ Avoid business probate freeze
- ✓ California attorney review INCLUDED
- ✓ Complete estate plan (trust, will, POAs)
Create Business Owner Trust — $150 →
Key Takeaways
- Small business owners NEED living trust — avoid 12-18 month probate freeze
- LLC can go in trust — assignment of membership interest
- S-corp can go in trust — stock transfer
- Succession planning essential — specify who runs/inherits business
- Incapacity protection — successor trustee runs business if you can't
- Cost: $150 for attorney-reviewed trust