“Charitable” LLC

• Friday, November 13, 2020
• Category: Estate Planning and Estate Administration

Not a Public Charity, Private Foundation or Charitable Trust

• LLC not subject to mandatory distributions or prohibitions on self-dealing, excess business holdings, jeopardy investments and taxable expenditures (e.g., lobbying/political activities)

• LLC not subject to attorney general oversight

• LLC tax return not subject to public disclosure

• Assets not permanently restricted for charitable purposes; can be used for any permissible purpose under state law

• LLC not exempt from federal income tax; taxed as “pass-through” to owners

• No charitable income tax deduction from funding; future benefit if LLC donates to charity

REF: Justin T. Miller, J.D., LLM. Chartable Tax Planning in the time of COVID-19, September, 2020

Kindly visit our Estate Planning or Estate Tax Planning websites or contact one of our Estate Planning Attorneys, Philadelphia, or Estate Attorneys, Philadelphia for more information on this topic.