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All right /biz, Im looking into starting an LLC or a Non-Profit to collect donations to give to other organizations.
Of course, this is /biz, so either way my end goal is to end up with as much money in my own pocket as possible. If I go the Non-Profit route, Id be paying myself for administration, web development, and marketing.
>Why would anyone donate to you instead of [x] organization directly?
Marketing.
And, depending on the organization, easier to use UI / convenience.
So far, my research is this:
LLC
-Pros
>Less start up cost
>Simpler start up
>Less risk (cant be accused of taking too much money)
>More private.
-Cons
>Donors cant write off donations on their taxes
>Taxes
Non-Profit
-Pros
>People can donate for a tax write off (so more / bigger donations)
>Tax exempt
-Cons
>More fees to start up
>More complicted
>Approval takes awhile
>More public
>Risk IRS trouble if I take too much
Start-up funds are limited and I've never filed for my own business before.
What is your opinion /biz?
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>>1619822
If it's a charity endeavor than it needs to be a non-profit.
However non-profits are very hard to set up. An LLC takes about an hour to set up.
Also, people that set up non-profits and take money go to jail on a regular basis.
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>>1619939
You can accept donations as an LLC, its just not a tax write off so donors have much less of a reason to donate.
And you can take money from a non-profit, its just a grey area. It has to be a "reasonable" amount for the actual service youre providing (its not like they get everything they need for free).
The problem is that "reasonable" is a bullshit term that has no place in the legal system.
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>>1619822
>Non-Profit to collect donations
Unless your taking a 20% cut for your self... GET OUT
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>>1619822
depends on your location. Swiss non-profits have a form where all you need to do is fill in your name and goals with no fees whatsoever
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>>1620482
USA
>>1620466
It would really depend on how much I can bring in and compare it to other Non-Profits of a similar size.
Obviously, the first money I bring in will be to cover the actual running expenses (domain lease, filing fees), and anything after that will cost me literally nothing but time.
And of course, I don't mind actually helping out some real charities so that's a plus.
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Im thinking right now that itd be better to start as an LLC so that it will be simpler and Ill be able to use as much of the funding as I need to get set up.
Then, I can either convert to a Non-Profit or use the LLC as a parent company to start one. I believe the increased donation amount for being a tax write off will be worth the trade off of being able to only take a fraction as "operating costs"
10% of $10,000 is greater than 100% of $100
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Bump. A lot of shitposts today.
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>>1619822
i believe california has an annual tax of $800 whether or not the LLC is active. So you're going to have to kick down that "tax" even if you're operating at a loss.
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>>1622685
Not in California. Turbotax (~$199 / year I believe) costs more than the legal fees in my state for an LLC, and itd honestly would be my biggest forseable expense.
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>>1622703
Bump
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>>1623688
Bump again. The front page is boring today
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>>1624416
And you think this thread is any more exciting? Fuck off
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>>1624419
Yes.
Funny how people have different opinions, right?
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