Is it legal to accept donations as an LLC?
Similar questions have been asked, but I'm still not completely understanding. I have an LLC that sells apparel, and people have offered to give us donations because the idea of our company is to donate and volunteer. We don't have the money to become a non-profit currently if you were wondering.
I don't want to get into trouble, so if someone offers a donation, should I just insist they buy something instead?
LLC Legal Non Profit Tax Donations
1 Answer
Well, simply said - sure. It cuonts as income. What it does not count as is deductable expense for the donators (they can not claim a tax break) AND you likely have to still write them an invoice and pay all relevant taxes (income, sales tax) although the sales tax may be avoidable (ask your accountant).
In general, one thing I dont understand is why you even bother coming here. Really. I run a busienss myself and my first (AND last) contact for that is my accountant which gladly tells me exactly what aperwork he needs for that and how taxing hndles it in my country.
Which brings me to the next point: you are not even bothering to tell me which coutnry you are in. I know two or three countries using the LLC denomination for a limited laibility company and half a dozen more which may LLC "translate".
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I live in the U.S. We are really new to the business world, so we currently don't have an accountant. We haven't even looked into getting an accountant. Aren't they expensive? – Brandersnatcher 13 years ago
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Hmpf. Yeah. They are REALLY expensive - it is a lot cheaper to fuck up your tax return and then get fined by the IRS. See it like that: They ae a baseline business expense. Accountant, Lawyer are the two things you need to one degree or another. You can simply not deal without, ESPECIALLY if you are new to the business world (i.e. clueless). You are legally obliged to keep your accounts in order. – Net Tecture 13 years ago
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We are quite clueless. But we didn't get a loan, and we don't exactly have a lot of money to spare. My Fiance and I are getting married soon so finances aren't easy to throw at lawyers. We have payed our taxes correctly so far, we just can't afford the investment :( – Brandersnatcher 13 years ago
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;) Nice. The next undercapitalized "business" going down when someone does not pay the bill for a month. – Net Tecture 13 years ago
