• FreeAdvice has a new Terms of Service and Privacy Policy, effective May 25, 2018.
    By continuing to use this site, you are consenting to our Terms of Service and use of cookies.

Starting a not for profit segment under your business that is for profit

Accident - Bankruptcy - Criminal Law / DUI - Business - Consumer - Employment - Family - Immigration - Real Estate - Tax - Traffic - Wills   Please click a topic or scroll down for more.



quincy

Senior Member
It is possible to have a nonprofit entity and a for profit entity operating under the same corporate umbrella. But structuring the businesses so the nonprofit does not lose its tax exempt status will require personal professional assistance.

The question really has nothing to do with dangerous or defective products.
 

FlyingRon

Senior Member
It is possible to have a nonprofit entity and a for profit entity operating under the same corporate umbrella. But structuring the businesses so the nonprofit does not lose its tax exempt status will require personal professional assistance.

The question really has nothing to do with dangerous or defective products.
Indeed. Even trying to start an 501(c)(3) that is entirely independent of any other entity is hardly a self-help issue.

As Q intimates, any "benefit" that the for-profit entity receives from the non-profit side risks invalidation of the non-profit's status.
 

quincy

Senior Member
It is not just an issue of benefit. There is also the issue of control of the exempt organization.
There are a lot of issues that will need to be addressed.

The bottom line for rsheady, whether or not s/he ever returns with details, is s/he will need to sit down with a professional in Pennsylvania. A forum will not be able to provide the help that is needed.
 
Sponsored Ad

Top