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I'm thinking about developing a small organization that offers training to educators online. I'm leaning towards non-profit so that I can pursue grant funding and expand the project further, but am concerned about the paperwork and costs involved. Which is simplest and most manageable? Do you pay taxes on all income received or only the profit leftover after salaries have been paid. Any feedback is of great help.

2007-09-08 01:33:20 · 1 answers · asked by Anonymous in Business & Finance Small Business

1 answers

Both involve about the same paperwork. LLC pay tax on income after all costs. Not for profit firms have the problem of dissolution. What happens when the firm is no longer necessary? An LLC just passes the assets back to you. A not for profit has its assets escheat to the state, if memory serves me.

I have thought about similar things, it might be easier to get a University or other not for profit involved as the front person for the grant. You do the primary work, but they get the credit as the primary. The problem will be that Universities charge enormous overhead.

2007-09-08 01:42:31 · answer #1 · answered by OPM 7 · 1 0

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