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Non-profit?


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Wondering if anyone here runs their business as a non-profit. Very much considering doing this and just looking for advice or resources to use along the way! TIA for any input or expertise! 

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My business is not a non-profit, but I deal with them all the time so I am in line with its regulations.

 

You will need to be dealing with IRS & State General Office on top of regular business administrations as a non-profit.  Best resource would be your local CPA.  Good CPA should be able to guide you thru the registering process.

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10 hours ago, StanfordP said:

@Brotato Mind me asking why you'd start a business as a non-profit? 

Not at all! It's just an idea of a way to help the community. The thought process, after doing a small amount of research on being a non-profit, would be to have my proceeds go to local charities and organizations. Upon researching, I could still pay myself a modest salary, but it would be fixed. I am ok with that as I am naturally pretty frugal and really just want to be comfortable. I'm a pretty simple girl. I live outside of Dayton, Ohio and would love to contribute to the programs that have been starting up around here to help the city. It's a very little, big city that has a pretty fair amount of poverty and issues. I think it would be awesome to be able to help fund some of these projects while doing something I love. Maybe exploit consumerism a little to help my community :) Being a non-profit, I could have some other benefits that would help this such as being tax exempt. I'm very, very much in the research stage and weighing pros and cons. It may be better to just being a regular LLC and make donations as I see fit. We will see! 

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It sounds like your operation is going to be more of "Commercial Coventurer" rather than being a Non-profit yourself.  Either way, they are more heavily regulated(more paper work to file) than regular businesses.  Every state has different regulations on this.  So, you should consult with CPA for best option for you.

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1 hour ago, BusyBee said:

It sounds like your operation is going to be more of "Commercial Coventurer" rather than being a Non-profit yourself.  Either way, they are more heavily regulated(more paper work to file) than regular businesses.  Every state has different regulations on this.  So, you should consult with CPA for best option for you.

Thank you! I will look into that! I don't mind being more heavily regulated or paperwork if that would work well. My day job is a secretary, it's what I do :) Definitely won't do anything before talking to a CPA as well. Just researching.

 

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Gotcha. Don’t do the non-profit. HIGHLY scrutinized by every governmental agency you can think of, including the IRS. If you want to be charitable, form the LLC and make charitable donations, which if part of your mission is to support your community, you can write off as an advertising expense (though consult your CPA for specifics). You can also look into B-Corps (benefit corporation), which is a hybrid approach to for-/non-profit. Basically, for-profit for the public benefit… also depends on where you live and whether your state recognizes it as an official entity type.

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I think B-Corp and Benefit Corporation is totally different thing.  I am pretty sure you have seen and dealing with lots of Non-profits from your day job, and you already know a lot about Non-profits.

 

If it was me, I would file for LLC with S-Corp designation ($800 annual fee + paper works: *S-Corp designation for better tax write off benefits over regular LLC, and LLC over Inc. for lower fees and less paper work) and register as Commercial Coventurer($350 annual registration fee + lots of paper work).  Being a Non-profit means that you are giving up on some control of your operation.  But do not take my advise as legal counsel.  No one can advise better than your CPA to suggest best way for you go.  Good luck with your venture!:)

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Thank you both! I really appreciate the input! I will definitely consider all angles and @StanfordP you may be right. It may just be easier to make contributions as needed. @BusyBee you mentioned previously that you worked with some non-profits. Do you mind sharing in what way and how that has worked out for you? :) Thanks so much again!

 

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