In Common law, a trustee does not have the power to carry on business with the assets of a trust, because a trustee cannot expose trust assets to business or other risks.

However a trust deed can expressly give trustees powers to carry on business. Accordingly it would seem that a trading trust is valid in law, provided the trust deed itself empowers the trustees to carry on business, which in itself implies that the trustees are entitled to expose trust assets to ordinary risks associated with the authorised type of business. Trustees of a trust can be given very extensive powers, including the powers to trade in and develop trust assets, and the terms of the trust deed can be such so as to allow beneficiaries to sell, cede or otherwise deal with their interests in the trust. 

A trust can be structured so as to resemble a company or close corporation: trustees can be given most of the powers of a director or member, and beneficiaries can be given rights that are similar to those of a shareholder, including the right to sell or otherwise dispose of his or her interests in the trust.

A great advantage of a trading trust is that it holds out the possibility of a limited liability form of trading without the complexities or expense inherent in trading through a company or close corporation.

It is imperative that a professional trust attorney be consulted with, to assist with the setting up of a Trading Trust.