How do you start a limited liability company (LLC) that is not a nonprofit but still has tax benefits?
I suggest you start with hiring a competent lawyer who works with nonprofits and LLCs, otherwise it’s likely to go poorly. With that being said, forming a limited liability company (LLC) that is not a nonprofit but still has tax benefits is follows this process:
The first step is to choose a name for the LLC and ensure it is available. The name must end with “LLC," “L.L.C.,” “Limited Liability Company,” or some abbreviation of those words. The name should also not be too similar to existing business names.
The second step is to file the Articles of Organization with the Secretary of State’s office (or if you are in Utah, it’s the Department of Commerce) (it might be different in your jurisdiction). The Articles of Organization will include information such as the LLC’s name, its purpose, the name and address of the registered agent, and the names of the members. Once the Articles are approved, the LLC will be officially recognized by the state.
Third, the LLC must obtain an employer identification number (EIN) from the IRS. This will be used for filing taxes and for opening a bank account for the LLC.
Fourth, the LLC must draft and adopt an operating agreement. This document will outline the rights and responsibilities of the members, how the LLC will be managed, and any other rules and regulations that should be followed.
Fifth, the LLC may need to register with the state and local governments in order to obtain any necessary licenses or permits. This will ensure that the LLC is able to conduct business in compliance with applicable laws and regulations.
You then go to the bank, open accounts and start operations. Now, if you need to be tax exempt, that is a completely different process.
Hope that helps. If you need to talk to a non-profit lawyer, try this one:
Jeremy Eveland
17 North State Street
Lindon UT 84042
(801) 613-1472
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