Can a Trust Own a Delaware LLC?

By Delaware Business Team • September 16, 2025 • 6 min read

Yes. A trust can own membership interests in a Delaware LLC. Delaware’s trust and entity statutes make this a common structure for estate planning, privacy, and asset protection when paired with sound tax and governance planning.

Why Use a Trust to Own an LLC?

• Continuity: Clear succession for business interests on incapacity or death.
• Privacy: Beneficial ownership can be kept out of routine public filings.
• Control: Trustees manage the LLC interest per trust terms; managers run the LLC day‑to‑day.

Implementation Basics

1. Establish the trust (revocable or irrevocable) with Delaware‑savvy counsel.
2. Form the Delaware LLC; Operating Agreement should recognize the trust as a member.
3. Retitle membership interests to the trust and update records and banking.
4. Coordinate tax filings; consider grantor vs non‑grantor consequences.

Key Considerations

• Trustee powers and limitations should align with LLC governance.
• Mind bank KYC/beneficial ownership reporting requirements.
• Cross‑state operations may trigger foreign qualification and tax filings.

General information only, not legal or tax advice.