Why is so Much Land Owned by LLCs and Trusts?
- Craig Kaiser
- Feb 9
- 6 min read
If you've ever searched property records in your county or used LandApp Pro’s nationwide ownership maps, you've probably noticed something curious: many parcels aren't owned by people with recognizable names. Instead, the owners are listed as cryptic LLCs like "Mountain Vista Holdings LLC" or "Prairie Trust 2019." In fact, a massive and growing percentage of U.S. land, from sprawling Midwest farmland to luxury coastal estates, is no longer held in the names of individuals. But why is this happening, and who is actually behind these legal entities? Whether it’s billionaires diversifying their portfolios or families protecting their heritage, the shift toward LLCs and Trusts is redefining land ownership in 2026.
Key Takeaways
The main reasons that so much land is owned by LLC’s and Trusts are privacy, liability, asset protection, estate planning and succession, and for tax benefits.
Many billionaires and large landowners choose to own land under LLCs, but this raises concerns about foreign and wealthy land ownership in the U.S.
The potential cons of owning or buying land in an LLC or Trust are high setup costs, financing complications, tax complexity, and the potential loss of homestead protections.
The Rise of Anonymous Land Ownership
Over the past few decades, there's been a dramatic shift in how land is owned in the United States. What was once straightforward- like ‘John Smith owns 40 acres on Rural Route 5’- has evolved into a complex web of corporate entities and legal structures. Today, a significant portion of U.S. land, particularly high-value properties and large holdings, is owned through limited liability companies (LLCs) and trusts rather than by individuals directly.
This trend is especially pronounced among billionaires and major landowners. For example Bill Gates, now one of America's largest private farmland owners with nearly 270,000 acres, holds much of his land through various LLCs (like 100C LLC, a subsidiary of Gates’ Cottonwood Ag Management firm that manages his farmland holdings) and other entities. Similarly, media mogul John Malone's vast 2.2 million acres of land holdings are structured through corporate entities rather than personal ownership.
The widespread use of corporate entities creates a significant challenge: it makes it difficult to know who actually owns what. Traditional county property records show the legal owner (the LLC or trust) but not the beneficial owner, the actual person or people who control and profit from the land.
This opacity has raised concerns about everything from foreign investment in American land to the concentration of land ownership among the wealthy. Without easy access to beneficial ownership information, researchers, journalists, and even neighbors struggle to understand the true patterns of land ownership in their communities. Some states have begun requiring disclosure of beneficial ownership for LLCs, and federal regulations are tightening.
Why is so Much Land Owned by LLCs and Trusts?
The reasons behind this ownership structure go far beyond simple preference. Owning land through an LLC or trust is a strategic move to keep the owner’s name private and protect their personal savings from lawsuits. It also offers tax advantages and makes it much easier to pass property down to heirs without the headache of probate court.
1) Privacy
Privacy and anonymity top the list of reasons why so much land is owned by LLCs and Trusts. When a property is held in an individual’s name, their home address, net worth, and purchase history become a matter of public record. For high-profile individuals and billionaires that own land, this is a security risk. By using an LLC- often registered in "anonymous" states like Delaware, Wyoming, or Nevada- the true owner’s name never appears on the deed. For high-net-worth individuals who value discretion, or want to avoid being targeted by opportunistic sellers or solicitors, this layer of separation is invaluable.
2) Asset Protection and Liability
Liability protection is another major reason that so much land in the U.S. is owned by LLCs and Trusts. If someone is injured on a property owned by an LLC, the lawsuit generally targets that specific entity and its assets, not the owner's personal wealth or other holdings. For investors with extensive portfolios, this means compartmentalizing risk. Each property or group of properties can be held in separate LLCs, ensuring that problems with one don't jeopardize the others.
LLCs (Limited Liability Companies): These create a "corporate veil." If a legal claim is made against the property, only the assets held by the LLC are at risk- not the owner’s personal bank accounts or other properties.
Trusts: Often used in tandem with LLCs, trusts can shield land from creditors and provide a layer of protection in the event of a divorce or a lawsuit.
3) Estate and Succession Planning
Estate and succession planning become far simpler with trusts and LLCs. These structures allow wealthy families to transfer ownership of land across generations without the complications, delays, and public nature of probate. A family can maintain control of valuable land holdings for decades, even centuries, through properly structured entities.
For instance, when a person dies, their estate often goes through a long, expensive court process called probate. Properties held in a Living Trust bypass this entirely, transferring immediately to heirs. Similarly, Trusts allow families to pass down land while minimizing capital gains taxes, ensuring that the "family farm" stays in the family rather than being sold to pay a tax bill.
4) Tax Advantages and Financial Planning
Tax advantages and financial planning also play a role in why so much land is owned under LLCs or Trusts. While these structures don't eliminate taxes, they can provide flexibility in how income is distributed, allow for strategic deductions, and facilitate sophisticated tax planning strategies that aren't available to individual owners. By wrapping a property in an LLC or a Trust, owners can tap into fiscal benefits that are simply unavailable to individual deed holders.
One major perk of owning land under an LLC is that it avoids the double tax hit seen in corporations; instead, financial results 'pass through' to the owners' individual taxes. It’s also a clever estate planning move. By gifting small shares of the LLC to family members over several years, you can shrink your future estate tax bill without giving up management of the property.
What are the Cons of Owning Property in an LLC?
While LLCs offer significant advantages, they're not the right choice for everyone. There are real drawbacks to consider, like setup costs, financing complications, tax complexity, and the potential loss of homestead protections.
Setup and maintenance costs can add up quickly. Forming an LLC typically costs several hundred dollars in filing fees, and many states charge annual fees or franchise taxes to keep the entity in good standing. For someone with just one modest property, these costs might outweigh the benefits.
Financing complications are another major hurdle. Many traditional mortgage lenders are reluctant to loan to LLCs, especially for residential properties. Those that do often require higher down payments, charge higher interest rates, or ask for personal guarantees that eliminate much of the liability protection. For property owners planning to use favorable owner-occupied financing rates, holding property in an LLC can disqualify them from those programs.
Tax complexity increases significantly. LLC-owned properties require separate tax returns and more sophisticated accounting. While there can be tax advantages, there's also the potential for additional taxes in some situations, such as transfer taxes when moving property into an LLC.
Loss of homestead protections matters for primary residences. Many states offer homestead exemptions that reduce property taxes and protect your primary residence from certain creditors. When a home is transferred into an LLC, these protections are typically lost making LLC ownership a poor choice for most owner-occupied properties.
For smaller investors or individuals with just one or two properties, the complexity and cost of LLC ownership may not be worth it. The structure makes most sense when you have significant assets to protect, multiple properties to manage, or when privacy is genuinely important to your situation.
See Who Really Owns the Land Around You
For anyone researching land ownership, cutting through these corporate veils is essential. This is exactly why comprehensive ownership data has become so valuable. Being able to trace not just the LLC name on a deed, but to understand the connections between properties, identify patterns in ownership, and access nationwide data in one place transforms an opaque system into something navigable.
With LandApp Pro's nationwide ownership data on desktop or on our mobile app, you can access comprehensive property records across the entire United States. Stop searching county by county and get the full picture of land ownership, from individual parcels to vast holdings hidden behind LLCs and trusts.
