If I start a business with partners, is it advisable to put that stake in an NLT since it will involve LLC, C corp or some other statutory law structure which might have some IRS reporting requirements even if I complete my revocation of election and might therefore raise IRS scrutiny? Should such business stakes involving statutory corporate entities be mixed with assets/accounts (e.g., brokerage accounts) owned by the NLT trust or should there be a separate NLT for them?
You’re making some incorrect assumptions. Doing the ROE does NOT “raise IRS scrutiny”. (See: https://brillianceincommerce.com/freedomfromtax, #4, Revocation of Election). On the contrary, it forecloses any opportunity the IRS might ever have to go against you, because you will have documented your status in the right language and filed with the right agencies, as approved by Congress. They can’t go against that. So drop your concerns about “scrutiny”. The ROE raises your status in their eyes in the government databases.
Further, why are you assuming that you need statutory entities? What’s the purpose? The NLT can do most everything that a statutory entity can do, and a lot more, with only a very few exceptions. For example, if you wanted to go public and sell shares on the NASDAQ or NY Stock Exchange, then you would need a C corp. Is that what you plan to do? If so, then use a C corp – – and then the NLT can hold most of the assets and income – – like up to 95% or so – – so the C corp would owe very little in taxes.
But if not, then for what purpose would you need a statutory entity? As far as partners are concerned, you can make them co-trustees of the NLT, or beneficiaries, or you can give them TCUs – – Trust Capital Units. Our trust writer Randall and his associates can help you with that after you are a paid trust client.