James Billings, the founder of Trustarte, is on a quest to unveil what he calls the “government scam” behind LLCs and S-Corps.

The wildly popular business structures of LLCs and S-Corps entangle entrepreneurs and investors in a maze of bureaucratic permissions, compliance and fees, according to James Billings, Founder of Trustarte.

“People have been led to believe that only LLCs and corporations can provide limited liability and asset protection,” he says. “This is simply false.”

Instead, Billings champions Business Trust Companies, a structure that dates back centuries and offers substantially the same benefits without legislative regulations. Unlike LLCs and corporations, Business Trusts can operate without filing organizational documents, paying upfront fees, or annual franchise taxes. “With Business Trusts, you avoid all these hassles,” Billings emphasizes.

To illustrate, Billings recounts a bit of history: “Three hundred years ago in England, setting up a corporation required an Act of Parliament. Meanwhile, trust structures evolved through common and equity law courts, becoming a solution for clever businessmen.” Despite an attempt by Parliament to outlaw these trusts, their legal validity allowed them to thrive.

In the U.S., early corporations faced many restrictions, such as owning real estate, which led companies like Standard Oil to opt for business trusts. States like New Jersey and Delaware capitalized on corporate revenues, but they never disclosed that businesses could operate without forming a corporation. “Rockefeller and Carnegie used Business Trusts because they circumvented state government controls,” Billings Notes.

Corporations and LLCs do offer many benefits but are ‘resource’ costly. They’re ideal for large publicly traded companies with investors. Officers and Directors are afforded great protections. In contrast a Business Trust Company is ideal for those who prefer a simple execution yet safe. “Imagine life without the demands of annual reports, state filing fees, or a registered agent,” Billings points out. Furthermore they’re exempt from the controversial Corporate Transparency Act.

The historical significance of Business Trusts underscores their legitimacy and long- standing utility. Years ago the largest companies in the world were not Corporations – they were Business Trusts. When looking at operational structures side by side, they all have benefits but only a Business Trust has the advantage of independence from state government control.

The modern application of Business Trusts offers privacy features that are increasingly important in today’s digital age. With the pervasive nature of online data, and business identity theft, maintaining privacy is more crucial than ever. A Business Trust is the analog solution. Imagine the frustration of competitors unable to source a business trust suppliers. Imagine the frustration of a frivolous lawsuit plaintiff. Imagine the frustration of states losing control and fees.

A Business Trust Company is a for-profit organizational structure, offering limited liability, asset protection, and income tax benefits including an S election. “Without the obligation for state registration, Business Trusts are unlisted online,” Billings explains. In advocating for Business Trust Companies, Billings is not just educating business owners and investors about an often-overlooked alternative. They’re hiding in plain sight. He is providing the solution they desperately want but didn’t know existed.

Billings believes that as more people become aware of this option, particularly those skeptical of government control and a preference for asset privacy, Business Trust Companies will resonate with savvy investors. “The advantages are compelling. It’s about gaining freedom,” he concludes.

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