If any of the shares the LLC holds are donated to a public charity, there will be no tax implications for the LLC, as if Z donated the shares directly or operated a private foundation, and without any of the freedoms of the LLC.<p>If any of the shares the LLC holds are liquidated by the LLC or granted to for-profits, situations where the &quot;other reasons to create the LLC&quot; are in effect, capital gains tax WILL be owed.<p>The LLC is as if he held the shares personally, when it comes to capital gains.<p>The estate situation is very different, not cut and dry, and that&#x27;s what is being discussed in this article.