This is the last article in our series on choosing an organizational entity for your business in Ohio. In our previous articles, we looked at sole proprietorships and partnerships, along with things to consider when choosing an entity, and then we looked at limited liabilities companies. Below we’ll compare the advantages and disadvantages of corporations as business entities. Depending on the size of a business, its capitalization and taxation needs, and the founders’ tolerance for regulatory compliance and government reporting, corporations can be an ideal because of the options uniquely available to these entities.

In our previous article on choosing a business entity, we looked briefly at some of the chief considerations that go into choosing a business entity and examined three business entities commonly used in Ohio, sole proprietorships, general partnerships, and limited partnerships (LP’s). In this article, we’ll look at limited liability companies (LLC’s), which offer more protection from business liabilities than sole proprietorships and general partnerships without being as complicated and expensive as a corporation.

Control. Flexibility. Protection from liability. Options for investors. All of these factors and many others play an important role in choosing the right business entity for your business. Choose the wrong entity type and you could be subjected to unnecessary regulations and reporting requirements or expose yourself to too much liability.

Estate tax deductions for donations to charitable organizations can achieve three principal objectives:

1. Giving the donor more control over their money by contributing to the non-profit organizations they want to support rather than letting the government control it
2. Creating a legacy for the donor and their family when large charitable donations of cash or assets are made, such as having a building, wing or program named after them
3. In some cases, charitable giving can actually increase the size of the estate left to a donor’s beneficiaries

However, the IRS has many rules governing estate tax deductions that must be adhered to if the above objectives are to be achieved. In the article below, the Ohio planned giving attorneys at Gudorf Law Group, LLC outline the basics of estate tax deductions for donations to charitable organizations. We hope it will be useful to you as you formulate your strategy for charitable donations to the organizations you want to support.

Gudorf Law Group, LLC ribbon cutting ceremony for their new office located at:

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Dayton, OH 45415

Taking advantage of income tax deductions for donations to charitable organizations gives an individual more control over how his or her money is used. Potential tax money is taken out of the hands of the government and given to charities the donor wants to support. Large charitable donations of cash or assets can also create a legacy for the donor and his or her family.

However, income tax deductions have a lot of rules that must be followed in order to take the deductions and achieve the desired result. The Ohio planned giving attorneys have provided this article to help you understand the basics of income tax deductions for donations to charitable organizations.

As gifts to charity, Individual Retirement Accounts (IRAs) are among the best assets for charitable giving at death.  If you are looking for a way to make a charitable donation, reduce estate taxes, and receive charitable tax deductions on income taxes and you have an IRA account that you don’t need income from, consider making a charitable organization the beneficiary of that account.

Charitable giving is a great way to reduce income and estate taxes while increasing your control over how your money is used. When you give to charity organizations in Ohio or nationally, you can take a charitable tax deduction either off your income taxes or estate taxes. Every dollar you donate to a qualified charity is a dollar that the government can’t control. Charitable giving also reduces the taxable portion of your estate so that fewer taxes are assessed to begin with, leaving more for your heirs.

We're happy to announce the opening of our Centerville, OH satellite law office at:

Gudorf Law Group, LLC
1800 Lyons Road
Centerville, OH 45459

This office will operate by appointment only.

A testamentary charitable lead trust (CLT) or charitable remainder trust (CRT) can be used to totally eliminate estate taxes if the trust is structured properly. By including a formula and specific wording, a testamentary trust can be structured so that, upon death of the Trust Creator, a charitable contribution is made to a public charity equal in size to the amount of estate taxes that would otherwise be owed to the government. Since every dollar donated to a charity can be deducted from estate taxes, this strategy reduces estate taxes to zero.