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Old 07-28-2010, 01:33 PM   #7
Justin McCallon
Member Justin McCallon is offline
Join Date: Oct 2007
Location: Atlanta  GA
Posts: 551
Re: A question about to be an LLC or Non Profit

A few of the folks at my law firm created non-profits while I was there over the summer.

It seems like a very drawn out and awful process with tons of paperwork, but if you hire someone that has done it several times before, it's really not that bad.

A law firm will probably be a bit more expensive, but they'll be able to do everything for you (bylaws, articles, etc.) and overall I'd guess charge about the same price. This isn't something complex for someone that has done it before. (I'd offer to do it for free, but a Non-Profit Corporation was the one entity I never created)

Whether or not a non-profit is the entity that you really want to make is perhaps more debatable. With an LLC you can take distributions (for you, individually) and pay only the capital gains rate in taxes, whereas with a non-profit you'll need to work entirely off salary. If all you care about is the business and you plan to take very little out of it (as a % of what you make), then perhaps a non-profit is a good idea. You may also want to look into an S-Corporation.
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