is it legal to start a not for profit private lounge?do you need licenses and insurance?

Question

i am interested in getting as many freinds as nessasary togeather to split the cost of renting a a retail or commercial building along with buying a couple pooltables and other things associated with a lounge and making it a co-op not for profit place to hang out i am courius if any body can tell me if this is possable without going through all the buissness legal junk normally associated with starting a for profit company?

thanks for the info i dont mean a non profit in the traditional thinking,i mean not attempting to make money just collecting say monthly dues just enough to pay the bills this would just be some friends with a place to have fun all with an equal monthly payment to keep it going.

Answer 1

It's possible, but not without going thru all the business legal junk - in fact, it is, if anything, more paperwork and documentation required to start and run a nonprofit than a regular business.

For more information, i suggest you take a look at the Small Business Administration website at http://www.sba.gov and check out the requirements for both.

Answer 2

It's legal, but you have to get approval from the feds to incorporate as a non-profit, and you need some very good reasons.