Legal Question in Business Law in Louisiana

Charitable Organization

It sounds like you might want to set up a non-profit corporation. The procedures and laws governing those entities would be found in your state's laws. By using a business entity, you limit much of the personal liability arising out of your activities. You should form this entity before you begin whatever activites you are planning, as you will not benefit retroactively if you incur some liability. A partnership is usually not a good vehicle because it offers almost no protection against personal liability and in fact adds additional risk based on the acts of every partner. Certain educational or charitable organizations can qualifty as a 501(c) entity under the revenue code, which means they are exempt form much of the tax code. You should check with your accountant and attorney to determine if this is a good option.You should consult with an attorney in your state before you proceed with this idea. If it is truly a non-profit organization, you may find an attorney who will help at a discounted rate or on a pro-bono basis.Good Luck

Charitable Organization

I have read and concur with Lawrence Glosser'sanalysis and wish only to add the following.Lousiana is the ONLY state that is not a"common law" jurisdiction. Because of its French background, its laws derive from theCode Napoleon. You must use an attorney who islicensed in Louisiana to comply, not with the 501c rules of the IRS,( easily obtainablewithout a lawyer and free for the asking fromthe IRS itself) but State and Local laws.

Do not be afraid to go intoyour local IRS office and ask for the help.

Depending on the nature of your not for profitcorporation, and the fields of business orlife it is going to be serving, you mightget support and info from that segment of thebusiness or general community you are craftingthis corporation to serve.

I cannot tell you more, without more info onthe purposes of your organization. Rememberthat you have to comply with all Federal, Stateand local laws in regards to charitablecorporations, and get an accountant who dealsin charitable corporations.

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