not for profit

[grove]

Hi all !Im brand-new to this forum. Does anyone know of any good resources for me to learn about for-profit vs not-for-profit companies? Im trying to figure out which type of organization I will create.

[zoobie]

Hi! Just want to welcome you here at YE!

[The Stealthy One]

Welcome aboard!

I don't know of any sites right off. I can help you try to figure this out, though. The best question to ask yourself is this: What is my reason for starting this company? What are my goals, and what do I hope to accomplish?

[IAAM]

grove,
I have hard copy info I can share with you. I too was interested in the pros/cons on which business type would be better. It all came down to whether my main focus was providing a service or products. Far as receiving donations from organizations or individuals, I also found they are more apt to donate to non profit due to the tax exempt status.

[grove]

IAAM,
Thanks for the response. I am interested in the hard copy info you have. My email is oldcaraddict@hotmail.com

[radreality]

Talk to an attorney for the best advice for your situation.

Sometimes you can be legally structured as a for profit company but qualify for 501C status to get some of the benefits of a none-profit. Why would you want this? Because none-profits fall under more scrutiny and your company records are public. So it depends on if you want to go through the hassle of all the scrutiny and if you want your records private or public.

it has nothing to do with the products or services you sell, it all comes down to the money and regulation.

______________________________
Robert Falk
Business Developer / Investor
Self Help & Success Forum

[akula]

Hi all !Im brand-new to this forum. Does anyone know of any good resources for me to learn about for-profit vs not-for-profit companies? Im trying to figure out which type of organization I will create.

here is an examples of the rules/paperwork you have to follow;

http://www.google.org/foundation.html

Google established the Google Foundation as a separate 501(c)(3) eligible private foundation and funded it with a $90 million donation in October 2005. The Google Foundation supports the mission and initiatives of google.org and does not accept unsolicited proposals. The Google Foundation's Board of Directors are Larry Brilliant, Sergey Brin, Larry Page and Sheryl Sandberg. Its officers are Larry Brilliant, Executive Director, and Gregory Miller, Secretary and Treasurer, and it has no employees of its own.

As a private foundation, the Google Foundation files annually a Form 990-PF with the U.S. Internal Revenue Service providing financial information and listing grants awarded during the fiscal year by the Foundation.

Other than that, non for profit status and the appropriate tax consequences are sometimes also achieved by you setting up a charitable trust. That's something that you can do over the weekend, in your kitchen, with a pen and a piece of paper (i.e. draft a trust deed).

[Aletheides]

Where did that $90 million donation come from??

[rpendery2006]

I would say check with an attorney depending on what you are trying to do.

[silversurfer]

There are three things we're talking about:
For-profit companies (and within that LLCs, corps, etc)

Not-For-Profit companies (These act as real companies but do not make a profit, therefore most "profit" goes back into infrastructure or bonuses. Mitre is an IT services contractor like this.)

Non-Profit charities (these may have some business angle, but primarily they are used to create projects to help something or solve a need, these include Goodwill who also run thrift stores)