What choice of business entity should I choose for my business?


-2

I am starting a non profit organization of which I will be the sole owner. The business is about selling books to particular groups of people at a cheaper price. I live in US, Massachusetts. What type of business entity should I choose.

Our business model does include a revenue model. Revenue comes from ads and to some extent from charging customers in order to sustain the business. We do not have any donation yet.

What entity should I choose? LLC, Corporation or something else? Does it matter at all?

I am non-US Citizen but will be one soon.

Getting Started

asked Jun 21 '12 at 12:21
Blank
Chimpanzee
102 points

2 Answers


2

chimpanzee, I wouldn't dismiss littleadv if I were you.

But then again I'm a Harvard lawyer.

For the sake of argument, let's say you have a non-profit pursuit and a for-profit one.

In that case, you need two entities:

  1. A non-profit entity, such as a 501(c)(3) and
  2. A for-profit entity, such as an LLC.

Hire a lawyer.

You'll screw it up if you do it yourself or keep asking for free advice on here, and end up in big legal trouble.

This would be like me trying to get coders here to write code for me for free.

How do you know the answers on here aren't from Law & Order JDs?

Good luck.

answered Jun 21 '12 at 16:31
Blank
User18490
81 points
  • I have no problem hiring a lawyer, if they know anything. Most of them are lame as we are. But I will definitely try to find one. This does seem simple to me, start as 501(c)(3) then as business grows, start an LLC. – Chimpanzee 12 years ago

1

Is it a non-profit organization or a business? Is the activity for profit, or the revenue is intended to cover the expenses? On what basis will you decide which customer to charge what?

These are questions you need to answer to yourself. Your citizenship doesn't matter as much as your residency status. If you're a non-resident there are entities you cannot own.

Non-profits should incorporate, and get a certification as non-profit. If its a for-profit business then its up to you to chose how to run it, it matters - but depends on your goals, and risks.

answered Jun 21 '12 at 13:16
Blank
Littleadv
5,090 points
  • As I said there is a business model. One aspect is non profit (why this business in the first place), the second aspect is for profit. Of course it will need some money to run the business so it has to generate profit. – Chimpanzee 12 years ago
  • So the whole enterprise is for profit? Your usage of "nob-profit" and "business" in the same sentence is confusing. Non-profits are **not** businesses. – Littleadv 12 years ago
  • Yes, the whole enterprise includes a profit model. I don't intend it for profit as such but well we will paying employee and we need a revenue source. – Chimpanzee 12 years ago
  • @chimpanzee you have to get a proper counsel, really. You seem to be unaware of what "profit" means and how is it different from "revenue". – Littleadv 12 years ago

Your Answer

  • Bold
  • Italic
  • • Bullets
  • 1. Numbers
  • Quote
Not the answer you're looking for? Ask your own question or browse other questions in these topics:

Getting Started