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Domestic Business
Trust and Massachusetts Trust
Formation and Advantages
"One of the objectives of business
trusts is to obtain for the trust associates, most of the advantages of
corporations, without the authority of any legislative act and with the
freedom from the restrictions and regulations generally imposed by law upon
corporations." 13
Am Jur 2d, Page 379, Paragraph 51.
A business trust,
also known as a Massachusetts trust, is created privately
without any registration, permission, or involvement of a governmental
agency, such as required for the formation of a corporation or limited
liability company or L.L.C. There is thus NO public record about the
formation and operation of a business trust---or the private trust's assets,
ownership, and management. A business trust is sometimes referred to
as an "unincorporated business organization" or UBO.
A business trust can be a domestic
business trust organized within a particular nation to operate a business
both within and outside of the domestic domicile of the business trust. An
international business trust is organized and located in an asset protection
haven or a tax haven such as Belize. The business activities of an
international business trust can be world-wide. Read more information about
the formation and advantages of an
international
business trust.
Read court decisions that affirm
business trust
validity as a legal entity. If the business trust is operated primarily
inside the USA, or does meaningful (more than incidental) business inside
the USA, the trust may be liable for USA income reporting (tax return) and
taxation. As to USA tax law only, is that trust an ordinary trust or a
business trust? Compare an
ordinary trust
versus a business trust. If a business trust, will it be taxed as a
partnership or as a corporation? Read
business trust
taxation.
The domestic business trust as a U.S.A.
business entity began in 1827 in the U.S. state Massachusetts. As a
consequence of the Massachusetts roots of the business trust concept, a
U.S.A. based business trust today is sometimes referred to as a
"Massachusetts Trust.". The U.S. Supreme Court held that the Massachusetts
Trust as a form of business organization, common in Massachusetts, comprising of
an arrangement wherein real estate (or other assets) is transferred in title
to one or more trustees, pursuant to written trust provisions.
Delaware
(U.S.A.) enacted its business trust law in 1988. Twenty-nine U.S. states
(including New York, Ohio, Texas, Utah, and Virginia) now have business
trust laws. Many U.S.A. mutual funds operate as business trusts, as do many
real estate investment trusts ("REITs").
The trustees of a business trust carry out
the same functions, and have similar duties, as the board of directors of a
corporation. The business trust and its assets are managed for
the benefit of persons who hold transferable certificates issued by the
trustees. The ownership shares into which the beneficial interest in the
property is divided are called "shares of beneficial interest." These shares
can be issued in the names of the beneficiaries or held by the trustees in
"bearer form" (no designated owner name for each share).
The business trust method for conducting a business began in Massachusetts
as a result of state legal statutes which barred the development of real
estate without a special act of the legislature or in other words, without
"permission" of the State. The business trust concept is based upon the
Common-law right to contract. The business trust concept places the business
trust on the same footing as legislatively or statutorily constructed
business organizations such as corporations and limited liability companies.
Thus, business trusts don't need legislative or governmental
"permission" to enter into a business activity, and the business trusts
don't have to be concerned about the many burdens and restrictions that are
placed on "statutorily constructed organizations".
For more information about business trusts,
please visit Business
Trust and
International Business Trust.
For Help in Establishing a
Domestic Business Trust
For help in forming and operating a
domestic business trust to operate as a domestic company anywhere in the
world,
please contact Certified Tax Consultant Phillip Fry. An initial consultation
(including initial tax planning assistance to you) with Certified Tax Consultant Phillip Fry is US$500,
payable in advance by FREE international bank wire (you subtract your bank's
wire fee from your payment).
To arrange your consultation, please
email Phil, or phone him
63-906-510-4000
or 63-919-375-0302
(Philippines) 7 p.m. to 7 a.m. Eastern Time (Canada/USA time).
Alternatively, you can pay your US $500.00 initial consultation with Phillip
Fry to Health & Wealth Guardian, Ltd. using your PayPal account, Visa,
Master Card, American Express Card, or Discover Card,
or a Visa or Master Card DEBIT CARD---simply click on the
PayPal Link below.
In
lieu of the initial consultation fee, or in addition to the initial
consultation fee,
you can pay Health & Wealth Guardian, Ltd. for your choice of either the
domestic or international business
trust formation fee of US$1,000 by simply click the PayPal button below:
For more information,
visit the website
Business Trust.
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