Legal Question in Business Law in Pennsylvania

Organizational legal structures

Can a not-for-profit organization be managed by, and direct funds to a for- profit (LLC) entity? Due to the nature of our market, it would be advantageous to operate a NP, but we want our two LLC to remain in tact and have the ability to be a subcontractor to funding/projects that the NP can obtain. Is this possible?


Asked on 6/20/08, 9:38 am

1 Answer from Attorneys
Roger Traversa Arjont Group (Law Office of Roger Traversa)

Re: Organizational legal structures

You asked about using a non-profit as a front-end to a for profit entities.

Sure, you can do that, if you wish to end up in jail (notice the sarcasm).

This is an example of why any business needs to have an ongoing relationship with a business lawyer. Questions like this are fairly easy to deal with as is a simple structure to achieve the same results.

There's old saying that is appropriate here: Penny wise and pound foolish. Spending a few dollars on a lawyer beforehand will save many dollars later when you need a lawyer to fix problems.

Regards,

Roger

Read more
Answered on 6/20/08, 10:52 am


Related Questions & Answers

More Business Law questions and answers in Pennsylvania