question on business structure

[klin19]

does any1 know wat r the advantage and disadvantage for the business structure: TRUST?

[akula]

trusts are not a business structure, they do not carry on trade unlike a sole trader, a partnership, or a corporation (the three recognised business structures). unlike a business, trusts do not exist to create profits, therefore they are not a business structure.

trusts are instruments used by businesses to manage legal/equitable rights and liabilities

trusts, as different to a corporation, are not a legal entity in them selves, but are a descriptive word used to summarise a fiduciary relationship between a trustee, a beneficiary and an executor. provided the relationship between these three parties meets the three certainties test, a trust may be declared to be in existence, even in the absence of a deed (contract without consideration).

there are 4 principal types of trusts: express, charitable, resulting, and constructive

they are created for different purposes.

you'd need to state your purpose, and then a lawyer will be able to advise you on the kind of trust that's most suitable for your business

to answer your question: advantages and disadvantages can only be explained if you state a purpose (i.e. pay less tax, set up fund for children, make charitable gift etc..)

[NeeJam]

LMAO best thing i've heard all day!

Its not a business structure business structures are - sole trader, partnership, LTD and PLC

Look here trust info http://en.wikipedia.org/wiki/Trust_fund