Can a Trust Own an LLC in Georgia?

Yes. Georgia's LLC Act (O.C.G.A. Title 14, Chapter 11) does not restrict LLC membership to individuals. A trust qualifies as a legal entity capable of holding membership interests. The trustee acts on the trust's behalf in all LLC matters, including voting and profit distribution decisions.

How It Works

When a trust owns an LLC, the trustee executes the Articles of Organization and signs all LLC documents as the trust's representative. The trust becomes the member-owner. Georgia law treats the trust like any other member—no special restrictions or requirements apply.

The trustee's authority to manage the LLC flows from two sources: the trust document and the LLC's operating agreement. The trust document must authorize the trustee to hold business interests. The operating agreement (if one exists) then specifies voting rights, management duties, and decision-making authority.

Operating Agreement

While Georgia does not require a written operating agreement (O.C.G.A. § 14-11-1107), creating one is strongly advisable when a trust is a member. The agreement should clarify:

The trustee's authority to make LLC decisions
How LLC profits distribute to the trust
Succession procedures if the trustee changes
Whether beneficiaries have any direct LLC rights

Without a written agreement, Georgia's default LLC rules apply, which may not align with your trust's objectives.

Key Considerations

Beneficiary Rights
Trust beneficiaries hold no direct LLC membership rights. They are not LLC members. Beneficiaries' only connection to LLC profits is indirect—through distributions the trustee makes from trust income per the trust terms.

Charging Order Protection
Georgia provides standard charging order protection for LLC members (O.C.G.A. § 14-11-504). This protection applies equally to trust-owned LLCs, shielding trust assets from LLC creditors.

Tax Treatment
Trust ownership of an LLC has federal income tax implications. The trust's classification (grantor trust, non-grantor trust, or irrevocable trust) affects how LLC income is reported to the IRS. Consult a tax advisor to ensure the structure meets your goals.

Public Records
Georgia LLC filings are public. The Articles of Organization will identify the trustee and registered agent. Trust ownership does not create anonymity.

Next Steps

Confirm the trust document authorizes trustee ownership of business interests
Draft an LLC operating agreement addressing trust membership
File Articles of Organization naming the trust as a member
Consult a tax professional regarding income tax reporting obligations

This is general information, not legal advice.