501c3 organization

[lizbeth17]

What is the name of your state?CA

If a person has their own organization, in this case a 501C3 nonprofit organization, is the income that the organization earns in a year considered also to be the persons personal income??? Or does it just look like the person doesn't earn anything?

 

[tranquility]

While a 501(c)(3) does not have to be a corporation, unless the person is very knowledgeable about such matters other forms are often discouraged. If a corporation, clearly the accounting is seperate from your own. Other forms are going to be seperate from you as well. However, if you didn't know that and know why, you have a lot of work to do before you consider taking the actions you envision. You are trying to get *income* to not be *taxed*. This is not a casual step but one with many rules. Be sure you know or have a good sense of them all before you start.

 

[lizbeth17]

the issue

Thank you for your reply. The issue is actually different in that even though this is this person's organization he claims he makes no money off of it and that he does not have a paying job. I was just wondering if that is completely true or not...????

 

[seniorjudge]

Thank you for your reply. The issue is actually different in that even though this is this person's organization he claims he makes no money off of it and that he does not have a paying job. I was just wondering if that is completely true or not...????

Can you say FRAUD?!

 

[lizbeth17]

??

The reality is that he doesn't receive a check for the work he does but the organization raises money which goes to support the organization. So i am guessing that he honestly doesn't have an income.