Thank you for your additional information.
As long as you realize that the revocable trust does not protect your assets from any creditors. This means that any asset that is in the revocable trust your creditors can seize and this is why they are telling you that you want to have a co-owner of the LLC to prevent a creditor from seizing your business as well. In a irrevocable trust this is not an issue, because assets in the irrevocable trust cannot be touched by any creditors. Keep that in mind and if you are seeking to protect assets from creditors then the revocable trust is not what you want.
If the sole owner of the LLC is the trust, the LLC issues the K-1 to the trust for any profits and losses just like the LLC would issue any other member a K-1. Under the law the Trust is considered a separate person (legal entity) just like the LLC is considered a separate legal entity.
You may want to spend some time and a few dollars sitting with a local trust attorney and discussing using the irrevocable trust if you are trying to protect assets.
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