Forming a non-profit organization involves several steps. Those seeking to form the organization must first choose any appropriate structure. The choice of entity depends on many of the same factors used in choosing an entity in the for-profit context. Depending on the choice, formation requirements vary, but will generally require the development of governing documents such as Articles of Incorporation or Certificate of Formation and Bylaws. Formation also requires the recruitment and appointment of appropriate Board of Directors/Trustees and an Organization Meeting. In addition, the non-profit should obtain an Employer Identification Number (EIN).
Once the non-profit is formed and has an EIN, it will generally seek treatment as a tax-exempt entity. The application for tax-exempt status is done at both the federal and state levels. The application will include a determination on whether the organization should be classified as a public charity or a private foundation. The determination generally depends on where the organization intends to secure the majority of its funds. A public charity, as the name implies, is “publicly supported” or is supported by other public charities. Private Foundations, on the other hand, generally receive most of their funding from one or a few large, private donors.
Antheil Maslow & MacMinn has helped form numerous non-profit organizations and has obtained tax-exempt status for many of our clients. Our attorneys can assist you in identifying the best structure for your non-profit and guide you through the steps required to qualify for tax-exempt status and to implement the processes that will secure the continued enjoyment of that status.
Choosing the right type of entity for you business is one of the most important decisions a business owner must make. There are many forms to choose from such as C Corporation, S Corporation, Limited Liability Company (LLC), General Partnership, Limited Partnership (LP), Limited Liability Partnership (LLPs), Professional Corporation, Business Trusts, and even tiered structures using several forms of entities. Business owners should consider a number of important factors when making a decision including the owners’ need for limited liability, who will manage the business, availability and flexibility of capital and financing, the transferability of ownership, and taxes. Antheil Maslow & MacMinn works with its clients to identifying the best entity for your unique situation.
JOINT VENTURES & STRATEGIC ALLIANCES
Individuals and entities may enter into joint ventures and strategic alliances for a variety of business reasons; for example, to pool resources for research and development of a prototype; to jointly manufacture an existing product; or to share distribution channels in the marketing or distribution of products. While usually intended to be limited and temporary in nature, sometimes these relationships are used as stepping stones to evaluate the advisability of a more