Legal Question in Business Law in Michigan
I am a administrator for two facebook groups. i help the needy in Muskegon by giving them items that they need. (clothes, dishes, shoes, kitchen utensils, etc.) People donate to me and then i have free give away days and let people get them free. It is all non-profit, no charge for anything, Do I need a LLC. for that?
1 Answer from Attorneys
If you are just donating things to charity then this is not really business activity for which you need a liability shield and if there is no money being transferred or earned you don't even have any tax concerns either. If you wanted, for example, to offer donors of items a tax deduction then you would have to form a tax exempt entity (501(c)3). If you were being given items for free then donating them and claiming tax deductions for yourself that might be a tax concern for which I would discuss with a CPA.
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