A Virginia Business Trust is a new type of company which provides liability protection, privacy and greater control than any other company in the country. It is the perfect vehicle for asset protection and estate planning. And for a business, the Virginia Business Trust combines asset protection and privacy with more choices as to corporate structure. For example, different ownership shares, called series, can be created or dissolved within the Virginia Business Trust without affecting the operations or liability of other shares. The only public information that must be disclosed is the name of the Virginia Business Trust, the address of its “principal office” and the registered agent’s name and address.
To create a Virginia Business Trust, articles of trust are filed with the State Corporation Commission (SCC). These are the only public records; the other trust documents are not filed with the SCC. Unlike a corporation or limited partnership, the names of the trustees and beneficiaries are not listed in the public records.
* Management can do the following without shareholder approval: Establish new classes, groups or “beneficial interests” and no filing with SCC required to establish above
* Amend rights, powers and authority of existing shares.
* Annual Meetings: There is no requirement to conduct an annual meeting.
* Voting: A VBT can restrict or even eliminate the right of beneficiaries to vote on any and all issues.
* Management: There is no limitation on trustee(s) power to delegate management.
* Conversion: An existing corporation, partnership or limited liability company can be converted into a Virginia Business Trust, or can be merged into a new Virginia Business Trust.
Set up requirements are minimal:
* A Virginia Business Trust is formed when the Articles of Trust are filed with the Virginia State Corporation Commission.
* A one page document is filed, which contains only the name of the trust, the name and address of he registered agent, and the address of the trust’s “principal office,” (which is not where the trust operates). There are no annual reports to file, only a small annual fee paid to Virginia (currently, $50).
* The trust agreement is private. Amendments to the trust agreement are also private and need not be filed in the public record.
* The business can be managed by trustee(s) or delegated to another person. Also, trustee can have difference duties.
As always, this article should not be considered a substitute for legal advice from an attorney.
For more information, go to http://www.VABusinessTrust.com