In this video, you will learn about a trust company. When you own a business, you need to consider how you will own the shares in your company. How the shares in your company are owned will dictate how much you pay in taxes.
You can own your shares through a trust or on your own. A trust is a legal relationship where the trustee holds assets for the benefit of someone else. These assets may be property, income, or shares. You can set up your own separate trust to hold your shares. Owning your shares through your trust gives you some options. You will receive dividends from the trust company, as will the other shareholders. As the trustee, you can distribute the money from the trust to yourself. The trust does not pay tax. The only money that is taxed is the money that comes out of it. Trusts can be a geat option for someone who wants to invest in their business in other ways. There is a lot to know about trusts. For more information on trust companies, keep watching the rest of this video.