Trusts LLCs and Management

[Taylor C]

Hi,

Sorting out some pieces here and I think we've been staring at this too long so your fresh insights would go a long way.

Took title to property in personal name and now doing some tax planning, estate planning, asset protection and privacy.

I'm greatly oversimplifying that survey says use trusts to hold props, llcs as beneficiary and maybe other entity to control/manage.

Where it gets especially hairy is single v. multi-member, member-managed v. manager managed (and professional manager), partnership v passthrough to 1040, avoidance of self-employment tax, and preserving passive income status (if it's not offset by valid expenses) to name a few.

Then there's the issue of collecting rents and paying mortgage. Assuming prop is in trust and beneficiary is an LLC, there is the issue of managing the property and collecting rents and paying mortgage and taxes, and expenses. I've been told to have a 2nd entity and that this entity would collect rents and pay expenses from its own business account. In North Carolina, if you're a "property management" company, I'm told you need some kind of license to do this (which we don't have). Then there's keeping security deposits - can this entity deposit security deposits from tenants of different properties w/out having to have the special bank account that gives ids to each tenant (read this somewhere in BP forums). To add to the mix, we have a local real estate agent (i.e., someone who has a license) who shows the property and takes deposits from tentants (currently in our personal name). I don't really want to add to the agent's burden by requiring the agent to create an LLC and have a separate bank account etc.

In the short term, I understand we can keep lease and assign it to eventual entity (LLC, C corp)

I know I've got a lot in here so it's OK if you have time to zero in on one or more pieces.

Whatever experience and solutions you have to clarify and make it happen are most appreciated :)

Thanks-