Tax implications (Living Trust Vs LLC)

[Cesar Bugarin]

Good afternoon any help with the following question will be appreciated.

What are the tax implications of the following Scenario:

A series LLC owns and controls several series (Each series own real property).

a. This series LLC pays taxes as a partnership (properties and gains do not appear on the individual schedule E, only K1)

b. This series LLC files taxes as a disregarded entity because it was placed inside a living trust. The trust files a 1041 and any distributions are also filed under the trustees K1 section.