Delaware Statutory Trust

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Counterintuitively, the The Delaware Statutory Trust (“DST”) is a Trust that is formed pursuant to the laws of the State of Delaware, but is an excellent product for California-based investors. The DST allows for anonymity and lawsuit protection. The DST also works with a Series structure (just like a Series LLC), so it is infinitely scalable at no additional costs, no matter how many assets you acquire. The DST is ideal for California residents since it also avoids Franchise taxes ($800 per year per LLC).  The major advantage to the DST is that it allows you to efficiently compartmentalize each asset. The DST can also be owned anonymously, and each asset that is compartmentalized in the individual Series of DST can be held anonymously.

The only ongoing fee is for a Delaware Resident Trustee, which costs $500 per year.

We are one of a handful of legal practices that know how to form the DST to avoid the CA franchise tax as well as ensure that the Federal tax treatment is treated as a “disregarded entity." With our system, you get the maximum protection possible while streamlining your taxes.