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What it isA tax-exempt charitable organization usually funded and governed by one family. The money is permanently committed to charitable purposes; it is not a family savings account.

How to use or set it upForm a nonprofit corporation or charitable trust under state law, appoint an independent-minded board, obtain an EIN, apply to the IRS for recognition, fund it, adopt grant and conflict policies, make qualifying charitable distributions, and file Form 990-PF every year.

What it isUsually a qualified defined-benefit or cash-balance pension sponsored by a family-owned business. It promises benefits under a written formula and is not simply a private account for family members.

How to use or set it upHave a pension actuary and retirement-plan attorney model the benefit formula, employee coverage, annual funding range, plan document, trust, investments, notices, and Form 5500 reporting. Fund the amount the actuary determines and administer the plan every year.

What it isA gift of artwork to a qualified charity. The allowable deduction depends on ownership history, fair market value, the charity's use of the art, the type of charity, adjusted gross income limits, and documentation.

How to use or set it upConfirm the charity will accept and use the work, document basis and ownership, obtain a qualified appraisal when required, have the charity acknowledge the gift, and file Form 8283. A claimed art deduction of $20,000 or more generally requires the signed appraisal to be attached.

What it isA licensed insurance company created to insure genuine business risks that commercial insurance does not handle efficiently. It must operate like real insurance, not like a disguised tax account.

How to use or set it upStart with an independent risk study, then use experienced insurance counsel, actuaries, regulators, claims professionals, and tax advisers to design coverage, price premiums, capitalize the insurer, distribute risk, issue policies, pay valid claims, and keep regulatory records.

What it isA C corporation is a separate taxpayer that can retain earnings, issue different equity, add investors, and continue beyond its founders. It is not automatically better than an LLC or S corporation.

How to use or set it upModel salary, reinvestment, dividends, state taxes, investor plans, exit timing, fringe benefits, and qualified small business stock eligibility before incorporating or changing tax status. Keep clean stock, payroll, board, and capitalization records from day one.

What it isA federal passive-loss classification for a taxpayer who spends more than half of all personal-service time—and more than 750 hours—working in real-property trades or businesses in which that taxpayer materially participates.

How to use or set it upPlan duties before the year begins, track time and work performed contemporaneously, separate investor-type time, confirm material participation in each rental or evaluate a grouping election, and review the evidence with a real-estate tax professional before filing.

What it isA federal credit for qualified research activities that seek to resolve technical uncertainty through a process of experimentation. It is a credit against tax—not a deduction for every new idea.

How to use or set it upIdentify qualifying projects and technical uncertainties, connect employee wages, supplies, and eligible contract research to those projects, preserve design and testing records, calculate the credit on Form 6765, and coordinate the tax and payroll filings.

What it isA regular 401(k) covering a business owner with no common-law employees—or the owner and spouse. The owner contributes in both employee and employer capacities.

How to use or set it upConfirm there are no eligible employees, choose a provider and written plan, adopt it by the applicable deadline, open the plan trust account, make and document employee and employer contributions, invest prudently, name beneficiaries, and file Form 5500-EZ when required.

What it isA tax-favored medical account for an eligible person, generally covered by a qualifying high-deductible health plan without disqualifying coverage. An HSA is not a Roth account.

How to use or set it upVerify eligibility month by month, open an HSA with a qualified trustee or custodian, contribute through payroll or directly, invest only through choices the custodian permits, keep medical receipts, and use tax-free withdrawals only for qualified medical expenses.

What it isA Roth IRA held by a custodian that permits alternative investments. The IRA—not the owner—may acquire eligible private-company interests or investment real estate.

How to use or set it upChoose a qualified custodian, fund the Roth through eligible contributions, rollovers, or taxable conversions, complete independent due diligence, have the IRA purchase and title the asset, and keep every dollar of income and expense inside the IRA.

What it is“Golden Roth” is not an official IRS account. Here it means intentionally building a larger Roth bucket using the Roth options the law and a retirement plan actually permit.

How to use or set it upUse direct Roth contributions when eligible, a Roth 401(k) when offered, planned conversions in lower-income years, or—only when the plan document permits—after-tax plan contributions followed by an in-plan Roth rollover or direct rollover to a Roth IRA.

What it isThe official name is a Coverdell Education Savings Account, or Coverdell ESA. It is a U.S. trust or custodial account created only for a beneficiary's qualified education expenses.

How to use or set it upOpen a written Coverdell ESA with an approved custodian for a beneficiary generally under age 18, coordinate all contributors, make cash contributions by the deadline, invest the account, save education records, and direct distributions to qualified expenses.