Can a Trust Own an LLC in Florida?

Yes. Florida law permits a trust to own and be a member of an LLC. The trust entity itself becomes the member under Fla. Stat. § 605.0102, which defines member broadly to include any person admitted to membership. No statute restricts trust ownership. The trustee acts on behalf of the trust in voting, management, and distribution matters.

Membership and Governance

A trust qualifies as a legal person under Florida law and may hold LLC membership interests. The trustee exercises voting rights and management authority on behalf of the trust-member. Fla. Stat. § 605.0301 governs member admission. The trust document must authorize the trustee to own business interests; absent such authority, the trustee cannot acquire the LLC interest.

The LLC's operating agreement should explicitly address trustee authority and decision-making power to avoid disputes. While Florida does not require a written operating agreement (Fla. Stat. § 605.0105), one is strongly recommended when a trust is a member.

Operating Agreement Provisions

Address these key items in the operating agreement:

Trustee authority to vote and manage the LLC
Distribution rights and timing to the trust
Trustee succession procedures
Transfer restrictions on the trust interest
Dissolution provisions affecting the trust

Default rules under Chapter 605 apply if the operating agreement is silent, which may not align with the trust's objectives.

Liability Protection and Charging Orders

Trust-owned LLC interests receive standard charging order protection under Fla. Stat. § 605.0503. Creditors of the trust cannot seize the membership interest directly; their remedy is limited to a charging order against distributions. This protection applies regardless of whether the trust is the sole member or one of multiple members.

Trustee Succession

When a trustee changes, the successor trustee automatically assumes the LLC membership rights under trust law. No LLC consent or amendment is required. However, the operating agreement should clarify that trustee succession does not trigger the transfer-versus-admission distinction under Fla. Stat. § 605.0502, ensuring the successor retains full voting and management rights.

Tax and Estate Planning

Consult a tax advisor regarding grantor trust status and pass-through taxation. Trust-owned LLCs do not automatically change the LLC's tax classification, but the trust's tax treatment may affect overall planning and income reporting.

Next Steps

Confirm the trust document authorizes trustee ownership of business interests
Draft or review the LLC operating agreement for trustee authority and succession provisions
File articles of organization naming the trust as a member
Consult a Florida tax attorney regarding income tax implications and estate planning

This is general information, not legal advice.