Redeemed in lawful money all year
As an individual, generated an income of less than ~$12,000 a year, falling under federal reporting thresholds
Compensate/Pay trustee(s) enough each year to fall below the income reporting threshold
Be aware that with employees or independent contractors the income and wages must be reported if the totals exceed the reporting threshold
IF IT IS AN LLC: If the only member of the LLC is an individual, the LLC will use Form 1040 + Schedule C, E, or F (consult a CPA to learn which form is right for you). If the only member is a corporation or the LLC has filed Form 8832 to be taxed as a corporation, the LLC will use Form 1120 or 1120S. If the only member is a trust, the LLC will use Form 1041. If it's a multi-member LLC and didn't file a Form 8832, use Form 1065.
IF IT IS A C-CORP: The corporation is taxed separately from its officers. Officers are solely responsible to file their own Form 1040s to report personal income. Corporations will file Form 1120 to report the corporation's income, gains, losses, deductions, credits, etc. for the tax year.
IF IT IS A S-CORP: Shareholders pay income taxes on any salary and the portion of S-Corp earnings. The personal tax is paid through a W-2 or a K-1 form (consult a CPA to learn which form to file). The corporation's tax is paid through a Form 1120-S to report the corporation's income, gains, losses, deductions, credits, etc. for the tax year.
IF IT IS A TRUST: The trust will report any income over $600 on Form 1041. If there have been income distributions to any beneficiaries, a Schedule K-1 will be required as well. Trusts with income under $600 do not require a tax return to be filed federally.
NOTE: Many states still require a registered entity (LLC, C-Corp, S-Corp) to file a return despite having $0 in income for the year. Federally the IRS requires all LLCs (taxed as a corporation) and Corporations to file a return despite having $0 in income for the year.