Legal Question in Business Law in Oregon

We are seeking corporate structure legal counseling. Our question is about how to link a for-profit with a non-profit. Could the non-profit be the Senior Member of a LLC? Could the non-profit be a general member of a LLC? Should we switch to a C-Corp and have the non-profit buy shares? Also, from the source "Form a Partnership: The Complete Legal Guide" by Attorneys Denis Clifford and Ralph Warner, they say a LLC can form a Limited Partnership (LP) in order to sell "shares." This creates a passive relationship between members of the LLC and their investors. Could the nonprofit link with a LLC as a passive Limited Partner? What provides the most wiggle room, keeping the two organization interdependent, but independent?


Asked on 9/25/09, 2:04 pm

1 Answer from Attorneys
Ann Sattler Aiken, St. Louis & Siljeg, P.S.

There are several factors that should be reviewed before advice could be given. Each situation is unique in regards to the needs of the nonprofit and the for profit should be reviewed. You've suggested several ways and those could work but it really is hard to say without knowing the purposes of each entity.

LEGAL Disclaimer: This is not legal advice and should not be relied upon as such. I am licensed in Washington and Oregon.

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Answered on 10/08/09, 12:58 pm


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