Sovereign Academy

Why move your LLC into a trust?

Probate avoidance

Trust ownership lets your heirs receive your company without court delays and filings.

Privacy

Trust agreements are private; you can keep member names off public filings in many cases.

Continuity

Smooth succession planning and multi‑generational control without interrupting operations.

Heads‑up: This guide assumes a revocable, grantor living trust and a single‑member or tightly held LLC. If your LLC has multiple members, outside investors, lender covenants, or transfer restrictions, grab consents before transferring interests.

Steps (works in most states)

1
Create (or confirm) your Revocable Living Trust. Name yourself Grantor and usually Trustee; name successor trustee(s) and beneficiaries. Keep a signed, notarized copy.
2
Assign your LLC membership interest to the trust. Use an Assignment of LLC Interest naming the trust as new owner. Date, sign, and keep with your minute book.
3
Update the Operating Agreement. Amend members section to reflect the trust as member. If there are co‑members, add their written consent if required.
4
Update records with banks & counterparties. Provide the bank a Certification/Abstract of Trust and new beneficial ownership info. Vendors/insurers may ask for the amendment or certificate.
5
IRS & EIN notes. For a typical revocable grantor trust owning a disregarded single‑member LLC, the EIN usually stays the same. Taxes continue under the grantor’s SSN/return. (If your structure is different—non‑grantor trust, multi‑member partnership, S‑corp election—confirm with a tax pro.)
6
Optional public notice. Some states permit (or you may choose) a brief filing or amendment to public records for clarity. Not required in many jurisdictions but sometimes useful for third parties.
Result: Day‑to‑day ops and tax treatment typically stay the same. You’ve just moved the membership interest into your trust for privacy and probate avoidance.

Documents you’ll need

  • Revocable Living Trust (or Certification/Abstract of Trust)
  • Assignment of LLC Membership Interest to Trust
  • Operating Agreement Amendment (Members/Ownership section)
  • Bank Beneficial Ownership/Certification updates
  • (Optional) State filing or public statement of change
⬇️ Assignment Template (DOCX) ⬇️ OA Amendment (DOCX) ⬇️ Trust Certificate (DOCX) Open Download Hub →

Quick checklist

  • Review OA transfer/consent rules before assigning interests
  • Collect signatures + notarize where required
  • Update minute book / company records
  • Give bank a Trust Certificate + BOI update if requested
  • Tell insurer(s) about the ownership change
  • Confirm tax status unchanged (most revocable/grantor cases)

State notes & pitfalls

Property‑owning LLCs (title & transfer taxes)

If the LLC holds real estate, you are moving membership interests, not the deed. Some states/counties may still scrutinize this for transfer/recordation taxes—check local rules and lender due‑on‑sale clauses.

Multi‑member LLCs (consent)

Operating Agreements often require other members’ written consent before any transfer to a trust. Get it in writing and keep with company records.

Lenders & leases (notice clauses)

Loan agreements, commercial leases, and vendor contracts may require notice of ownership changes. Send a short notice letter with your Trust Certificate.

BOI / FinCEN (beneficial ownership)

FinCEN BOI reporting is in effect. Changes in control/ownership may require an updated report. Check if your situation triggers an update and file on time.

FAQ

Do I need a new EIN for the LLC?

Usually no for revocable grantor trust + single‑member disregarded LLC. If you change tax classification or move to a non‑grantor trust, you might—check with a tax professional.

Will my day‑to‑day operations change?

No. You are changing ownership on paper (who owns the membership interest), not how the LLC operates.

Can my trust be the manager too?

Yes, your OA can name the trustee as manager or keep you as manager in your personal capacity. Keep signatures consistent with titles.