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8 Replies Last post: Feb 23, 2008 9:42 PM by melmurray123

LLCs and non-profits

Feb 22, 2008 5:24 PM

Click to view melmurray123's profile Professional melmurray123 7 posts since
Feb 15, 2008
Hi all! I am starting a preschool and I am trying to decide whether I want to make it a regular company (and LLC) or a non-profit. As the sole owner, I would be taking a salary in either form, so money is not my concern. My issue is for tort and contract liability reasons, would I also be insulated as a non-profit organization? Does anyone know how non-profits are tax (ex. as a partnership)?

Thanks for your help!
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Click to view MoneyforBiz's profile Authority MoneyforBiz 10 posts since
Feb 22, 2008
1. Re: LLCs and non-profits Feb 22, 2008 5:42 PM
Call your accountant...big time........LLC's are looked upon a lot differently than in years past........and there are a lot of benefits for non-profits
Click to view melmurray123's profile Professional melmurray123 7 posts since
Feb 15, 2008
2. Re: LLCs and non-profits Feb 22, 2008 6:19 PM
in response to: MoneyforBiz
Ok thanks! I will call her.
Click to view LUCKIEST's profile SCORE LUCKIEST 7,938 posts since
Aug 6, 2007
3. Re: LLCs and non-profits Feb 22, 2008 9:39 PM
123, How soon are you starting this preschool??
Do you have a Business and Marketing Plan??
Do you know about SCORE. SCORE is FREE
Every business person should have an Accountant (you have one)
A Lawyer and an Insurance Agent.
Good luck, LUCKIEST
Click to view melmurray123's profile Professional melmurray123 7 posts since
Feb 15, 2008
4. Re: LLCs and non-profits Feb 22, 2008 9:44 PM
in response to: LUCKIEST
Click to view LUCKIEST's profile SCORE LUCKIEST 7,938 posts since
Aug 6, 2007
5. Re: LLCs and non-profits Feb 23, 2008 8:10 AM
Does this help??
Tort is the law of civil wrongs. Tort law usually provides people with the rights to compensation when another person harms their legally protected interests. For instance, if somebody throws a ball and it accidentally
hits a pedestrian in the eye, any costs of medical treatment and
compensation for lost income during time off work could be paid by the
person who threw the ball to the person who was hurt. As well as bodily
integrity, certain liberties are protected, such as the right to one's
reputation. If a newspaper publishes a defamatory
statement about a celebrity which is untrue, the paper may have to pay
damages as a way of demonstrating they were wrong.
The majority of tort cases concern road accidents, accidents in the workplace or medical accidents.
Click to view melmurray123's profile Professional melmurray123 7 posts since
Feb 15, 2008
6. Re: LLCs and non-profits Feb 23, 2008 12:03 PM
in response to: LUCKIEST
Hi Luckiest...thanks for trying but that doesn't help. I am attorney, so I know all about torts :) I researched the D.C. code and found that non-profits organized in the District must be corporations so I would have the same protection as that a corporation would have (I would not be personally liable and would only be at risk of losing my investment).

Thanks again!

Melanie
Click to view elpelp's profile Professional elpelp 6 posts since
Feb 23, 2008
7. Re: LLCs and non-profits Feb 23, 2008 7:58 PM
Here's a good free website that should be helpful. Although it's relatively new, it seems to be posting good information. This is a specific post to starting a new business and what legal entity to choose. I'd say go with LLC since it's tough to secure non profit status.

http://www.bizscoops.com/2008/02/18/forming-a-new-legal-entity/
Click to view melmurray123's profile Professional melmurray123 7 posts since
Feb 15, 2008
8. Re: LLCs and non-profits Feb 23, 2008 9:42 PM
in response to: elpelp
Thanks elpelp! I will check it out!

Mel