Legal Question in Business Law in Kansas

I am starting a junior golf tour and I am going to organize it as a subdivision of my corporation. It will most likely be formed as an LLC. My question is whether or not there is a law requiring it be organized as a non-profit organization. A lot of other golf tours in the region are non-profits, however I am not going to rely heavily on donations and I want the tour to remain part of my corporation so I may use those assets to further it.

That is my main question is whether or not it MUST be a non-profit, or if maybe others in the area have done so because of the ability to receive tax-deductible donations, avoid income tax, etc.


Asked on 5/18/10, 6:37 am

1 Answer from Attorneys
Anthony Smith LawSmith

You kind of answered your own question. The reason many tournaments are nonprofit entities is so that donors may get a tax advantage to giving funds, time or products to the tour. There is no requirement of nonprofit status as to tax or business law. However, your tour may not get sanctioned by some or any of the golf governing bodies if it is not a charity. You seem to already know that you will be taxed on every dollar you take in, and those paying will not get to deduct anything they pay.

Good luck

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Answered on 5/24/10, 3:11 pm


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