Why C Corp Beats LLC for Your Dynasty Empire

LLCs seem simple and "tax-friendly," but for true asset protection, REIT scaling, and generational wealth shielding, they fall short. Here's the breakdown:

⚠️ Why NOT an LLC

• IRS Grantor Trust Trap: When your dynasty trust owns the LLC, the IRS may treat it as a grantor trust. You could be taxed on rent or income personally depending on structure.
• Lender Resistance: Some banks are tougher on LLCs for certain lending. They may still demand personal guarantees, so you can be still on the hook.
• Scaling Complexity: Holding back units, incentives, and multi-entity scaling can get complicated fast.
• Internal Family Agreements: Lease forgiveness and internal arrangements can create messy reporting if not documented cleanly.

🚀 Why C Corporation Wins

• Clean Separation: Trust owns shares, corporate entity holds operations, distributions stay deliberate.
• 21% Corporate Rate (when retained): Retained earnings can be reinvested strategically (structure matters).
• Stronger Optics for Scale: "Inc." can read more established for vendors, lenders, and counterparties.
• REIT and Holding Structure Friendly: Cleaner stacking with holding companies and internal agreements.
• Strategic Share Control: Easier to structure ownership, incentives, and long-term control planning.