Trust vs. LLC for Rental Property in California: Which Is Right for You?

Trust vs. LLC for Rental Property in California: Which Is Right for You?

If you own a rental property in California and are setting up a trust, you may be wondering whether your rental property should be placed in a trust, an LLC, or an LLC owned by a trust. Choosing the wrong structure can expose you to unnecessary liability, probate costs, or tax complications.

📞 For help preparing trust or LLC documents, contact A Golden Legal Service today at 510-344-5445.

Trust vs. LLC: What’s the Difference?

• A revocable living trust is designed to avoid probate and provide estate planning continuity.

• An LLC is designed to provide liability protection for rental property owners.

Because these tools serve different purposes, many California landlords use them together.

👉 A Golden Legal Service can help prepare the documents needed for a trust, an LLC, or both. Call 510-344-5445 to get started.

Option 1: Rental Property in a Trust Only

Best for low-risk rentals

Pros

• Avoids probate

• Simple structure

• No annual LLC fees

Cons

• No liability protection beyond insurance

📞 Need help preparing a trust or transferring property into it? Call A Golden Legal Service at 510-344-5445.

Option 2: Rental Property in an LLC Only

Best for liability protection without estate planning

Pros

• Shields personal assets from rental-related claims

Cons

• Does not avoid probate

• $800 annual California LLC tax

👉 A Golden Legal Service can prepare LLC formation documents and filings. Call 510-344-5445.

Option 3: LLC Owned by a Trust

Best overall protection for many landlords

Pros

• Liability protection

• Probate avoidance

• No change to income tax reporting

• Scales well for multiple properties

Cons

• $800 annual LLC fee

• Requires careful structuring

📞 This is one of the most common setups we assist with. Call A Golden Legal Service at 510-344-5445 to discuss your situation.

How A Golden Legal Service Can Help

A Golden Legal Service provides professional legal document preparation services to assist with:

• Revocable living trusts

• LLC formation and compliance documents

• Deeds transferring property into a trust or LLC

• Trust ownership of LLC interests

📞 Call A Golden Legal Service today at 510-344-5445 to protect your assets and plan for the future.