I was thinking of starting a non profit business that does IT work for local, public, charity type places?

Question

It would just be my labor (when parts are needed, I would sell at cost). I'm wondering what kind of tax benefits I could get from it. I live in a small area where everyone knows me, and calls me for all things involving computers. I am the IT Manager for a local factory. I get calls all the time from charity's, library, museums.. ect. I would like to do a service to the community, but I would like to get something out of it as well. Anybody have any experiences with no-profs or tax right offs?

Answer 1

It's possible of setting up a non-profit for this, but that takes quite a while (for the approval process).

I've worked for non-profits.

The non-profit company wouldn't have to pay taxes, but if you're taking money as income from the non-profit, you would have to. For you personally, you could set up an LLC or s-corporation, and simply make sure it pays everything it receives to you. If the company keeps no money, it wouldn't have to pay taxes. But, you personally would have to pay, regardless.