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Martha Burdick posted a new Legal Issues thread on 2/5/2011

Starting a small business in WA State that might ultimately be best as a nonprofit. Any downside to transitioning from corp. to 501-c-3?

Concerned if such transition is legal/possible. Business is in social entrepreneur area. Some concern on how activity perceived if organized as for-profit.
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Alice Nadin Responded on 2/8/2011


Martha

Read up on the rules on the IRS website at:
http://www.irs.gov/charities/charitable/article/0,,id=96099,00.html

As a corp - someone profited from this venture. Pay particular attention to the:
"none of its earnings may inure to any private shareholder or individual" section of the rules.

Lastly contact your local BAR Association who will offer legal assistance with your question. See:
http://www.americanbar.org/aba.html to find your local contacts.

Alice, SCORE Pittsburgh
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Home » Forums » Legal Issues » Starting a small business in WA State that might ultimately be best as a nonprofit. Any downside to transitioning from corp. to 501-c-3?