Legal Question in Business Law in California
Can an Limited Liability Company ask for donations ?
2 Answers from Attorneys
You can ask for anything you want, but you can't be a charity. So donations would not be tax deductible to the people who donate.
You can certainly receive donations. If you are soliciting for them, you need to be concerned with the rules in each state where you are soliciting. Some states require a registration before you ask their residents for donations.
Anything you receive will be considered income and even if this passed forward to a charitable cause you need to be clear on what exactly will be considered tax deductible to your business.
Further and as noted, you cannot offer any tax deduction for this money so there is no incentive for anyone to give to you as opposed to a worthy cause where they also receive a tax deduction for their donation.
If you would like to discuss further over a free phone consult, feel free to contact me anytime that is convenient.
Kind regards,
Frank
www.LanternLegal.com
866-871-8655
DISCLAIMER: this is not intended to be specific legal advice and should not be relied upon as such. No attorney-client relationship is formed on the basis of this posting.
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