Legal Question in Business Law in Missouri

How do I start a FOR-PROFIT Charitable Company?

Basically it is going to be a company that gives a percentage of every sale to a Charity Foundation and then the owner(s) get to keep the rest. Is that legal? And then is it also legal to write-off those donations on the taxes?

What would I register my company under? (LLC? NON-PROFIT?)

Thank you so much!

Aaron


Asked on 1/05/12, 1:08 pm

1 Answer from Attorneys

Michael R. Nack Michael R. Nack, Attorney at Law

There are a number of legal forms of business organization, and your choice of the best form for your particular business is an improtant one. In addition to the legal decision, you should consider the various tax consequences inherent in each form of business organization. I hve incorporated a large number of small businesses, and I have also organized a large numkber of LLC's. I insist that my clients obtain expert tax advice from a tax professional because I do not give tax advice as a part of my legal practice. I do not know of any reason why you could not organize under the regular general corporation statute or under the LLC statute and then operate the business making charitable contributions as you set out in your question. Many large corporations do this all of the time. Please feel free to contact me if you would like a free telephone consultation and I will be happy to help you.

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Answered on 1/05/12, 2:44 pm


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