Need advice on incorporating the team

The Virginian · 12-07-2008, 09:02 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?

Thanks,
Brett
Stoddard and Brown

The Pickled Pig · 12-07-2008, 09:38 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) organization. Why do you want to be a NFP?

CivilWarBBQ · 12-07-2008, 10:49 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.

Scottie · 12-07-2008, 11:18 PM

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.

Scottie

Rickwieser · 12-08-2008, 12:19 AM

seems like our team was not for profit every year we competed but not by choice. lol

KuyasKitchen · 12-08-2008, 02:30 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.

Brauma · 12-08-2008, 08:58 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.

HeSmellsLikeSmoke · 12-08-2008, 09:03 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?

12-07-2008, 09:02 PM	#1
The Virginian On the road to being a farker Join Date: 11-27-07 Location: Arlington, VA Downloads: 0 Uploads: 0	Need advice on incorporating the team 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? Thanks, Brett Stoddard and Brown

12-07-2008, 09:38 PM	#2
The Pickled Pig is One Chatty Farker Join Date: 06-21-07 Location: Overland Park, KS Downloads: 0 Uploads: 0	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) organization. Why do you want to be a NFP? __________________ Paul Ostrom The Pickled Pig Twitter - @ThePickledPig CBJ, WSM, UDS Cookers, Weber Gasser, Weber One Touch Gold Kettle,

12-07-2008, 11:18 PM	#4
Scottie Babbling Farker Join Date: 11-03-06 Location: Chi-Town Downloads: 0 Uploads: 0	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. Scottie __________________ cancersuckschicago.com FROM SEA TO SHINING SEA BBQ TOUR Red Jambo one off FE 100 FEC 100 WSM Homer Simpson 22 " Weber Kettle Red 18 1/2" Weber Kettle Black 26 3/4" Weber Kettle

12-08-2008, 12:19 AM	#5
Rickwieser Knows what a fatty is. Join Date: 11-23-05 Location: independence MO Downloads: 0 Uploads: 0	seems like our team was not for profit every year we competed but not by choice. lol __________________ [FONT=Times New Roman]Smokin Mother Ruckers BBQ team[/FONT] [FONT=Times New Roman]Backwoods party with upgrade mods[/FONT] [FONT=Times New Roman]3 WSMs[/FONT] [FONT=Times New Roman]Freidrich Max Flavor 400(for sale)[/FONT] [FONT=Times New Roman]weber kettle[/FONT] [FONT=Times New Roman]Seeking used backwoods competitor[/FONT]

12-08-2008, 02:30 AM	#6
KuyasKitchen is one Smokin' Farker Join Date: 11-27-08 Location: Tacloban, Leyte, Philippines Downloads: 0 Uploads: 0	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. __________________ James Kuya's Kitchen - my culinary adventures in the rural Philippines IMBAS Certified MOINK Baller Equipment: Weber Kettle, Stainless GOSM, Green Super-Fast Thermapen Equipment Wish List: Smokehouse, Backyard Brick Pit with Lechon Spit

12-07-2008, 10:49 PM	#3
CivilWarBBQ is One Chatty Farker Join Date: 08-08-07 Location: Cartersville, GA Downloads: 0 Uploads: 0	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, 08:58 AM	#7
Brauma Quintessential Chatty Farker Join Date: 05-04-05 Location: Goochland, VA Downloads: 0 Uploads: 0	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. __________________ Mark - part of Cat Sass BBQ Team. Community Development VP - Secret Squirrel Society (but we don't exist) Member: Mid Atlantic BBQ Association. Member: KCBS. CBJ # 31818 "Life's too short to drink cheap beer or eat crotchpot BBQ" NB Bandera - refurbished; Two Big Green Eggs: Poncho - Large, and Lefty - Small; Weber Kettles; 6' fire pit; Super fast Blue Thermapen

12-08-2008, 09:03 AM	#8
HeSmellsLikeSmoke somebody shut me the fark up. Join Date: 04-02-07 Location: Warren, Vermont Downloads: 0 Uploads: 0	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? __________________ Jim - Another transplanted Texan Former KCBS CBJ Large and Medium Big Green Eggs , Black 18.5" WSM, Blue Weber Performer - Stainless, Green Weber OTG Kettle , Brinkmann SnP Pro, and a Stainless UDS. One retired Portable Kitchen grill. Red Thermapen, Maverick ET-73, EdgePro Apex Sharpener. Avatar is the original 1951 Weber Kettle

Similar Threads
Thread	Thread Starter	Forum	Replies	Last Post
Team Name Advice......	kindollbbq	Competition BBQ	12	03-14-2010 11:48 PM
what is an must have for every team	beam boys bbq	Competition BBQ	69	12-30-2009 02:20 PM
New Team Asked For Advice...	bbqdavarrow	Competition BBQ	18	09-29-2009 09:55 PM