Should you set up a trust or an LLC with this?
- Wealth Guranted
- Oct 27
- 1 min read
Well, when you ask whether to use a trust or an LLC, it’s important to understand the differences. Although the 12-411 process can be applied to make your LLC or business income non-taxable, when it comes to choosing a corporate structure that aligns with privacy, asset protection, and long-term wealth strategy, Wealth Guaranteed recommends a private trust over an LLC — and here’s why:
LLC (Limited Liability Company):
Public Entity: Formed through the state, recorded in public databases, and tied to statutory law.
Mandatory Reporting: Required to file annual reports and tax returns, which places you under IRS jurisdiction.
Limited Protection: Offers “limited liability,” but still exposes your assets to litigation, IRS scrutiny, and court orders
Tax Obligations: By default, treated as a pass-through entity unless filed otherwise. Even if non-taxable under 12-411, the LLC structure keeps you operating under public law
Private Trust (Recommended):
Private Entity: Established in the private, outside of statutory United States jurisdiction.
No Mandatory Reporting: Properly structured express trusts are not required to file tax returns or register with any agency.
Superior Protection: Provides bulletproof asset protection with true control over your wealth without direct ownership.
Privacy & Permanence: Offers generational wealth transfer tools with complete privacy and legal protection.
The Bottom Line:
Yes, you can use the 12-411 process to make your LLC or business income non-taxable. However, when it comes to long-term wealth building, asset protection, and privacy, we strongly recommend setting up a private express trust.
A trust gives you protection. An LLC gives you permission. Choose the one that aligns with true freedom.
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