View Full Version : Need advice on incorporating the team
12-07-2008, 10:02 PM
Andy and I are talking about making our team a "not-for-profit" entitiy with its own checking account, tax number, and so on. I have no idea how to proceed on this. If any of you all have been through this process, what do we need to do to get things set up?
Stoddard and Brown
The Pickled Pig
12-07-2008, 10:38 PM
I don't know about the NFP part but it's usually simple to register with a state as a sole proprietorship and get a sales tax certificate and Federal TIN.
I think that in order to become a NFP requires you to file some paperwork with the IRS to be recognized as a 501(c)(3) (http://en.wikipedia.org/wiki/501(c)) organization. Why do you want to be a NFP?
12-07-2008, 11:49 PM
This has come up before, on the Basso forum I think.
Scottie would be the authority on this topic, but I believe the bottom line is if you intend to support charity you can go for Non-Profit status, but if you're just looking to beat the tax man it may cause you more trouble than it's worth.
12-08-2008, 12:18 AM
I think you might be confusing them. You want to Incorporate your business. I would form a LLC, where a 501c3 are for foundations that are a Not for Profit status. Which are enforced by very strict rules by the IRS. Speaking from experience.
But incorporate first, which I think is what you are wanting to do.
12-08-2008, 01:19 AM
seems like our team was not for profit every year we competed but not by choice. lol
12-08-2008, 03:30 AM
Going NFP gets you saddled with a lot of nasty rules. Be sure that's the direction you really want to go before you do it.
12-08-2008, 09:58 AM
I know of teams who have a catering side and a comp side. The two are held seperate and the catering business sponsors the comp team. It's a reciprocal relationship.
I agree with the others; I dont think you want to go NFP. If you think you may cater then incorporate that side and insure it to protect you from lawsuits. Then your comp side is all play - its where the fun happens.
12-08-2008, 10:03 AM
I might be missing something here, but I don't see any advantage in incorporation? What it is you are trying to accomplish by doing so?
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