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A business trust is a legal instrument that can be used to delegate the authority to manage a beneficiary stake in a certain business.
Trusts are used to provide protection for assets for individuals and businesses. For business owners, trusts protect beneficiaries and thwart potential creditors (including previous spouses) from gaining direct access to assets held within the trust.
A trust is an agreement that allows one party, known as a trustee, to hold, manage, and direct assets or property on behalf of another party, called the beneficiary. In a business trust, a trustee manages a business and conducts transactions for the benefit of its beneficiaries.
In a trust structure, a trustee holds your business for the benefit of others (the beneficiaries). A trustee can be a person or a company, and is responsible for everything in the trust, including income and losses.
A legal arrangement in which a person or organization controls property, investments, etc., for another person or business: Houses can be purchased in the name of a business trust to disguise the name of the actual owner.