How hard is it to found a not-for-profit business?

Question

I live in TX, USA.

Answer 1

Since you've never been in business before, I would strongly recommend that you talk to a business counselor before you do anything especially spend money. I'd call the local office of SCORE (go to http://www.score.org and input your zip code to find the chapter nearest you), the advice is FREE. Ask for a counselor with not-for-profit experience.

The counselor at SCORE will most likely advise you to write a business plan which is very good advice because it will force you to dig out all of the start up details and the costs of starting your not-for-profit business and force you to also understand all of the aspects of this business including the customers you'll concentrate on (your market ) and how you'll go after them.

You'll need to register the business with your state controller's office and make sure that you have any city and county licenses if any are needed where you live. All of this will come out in a business plan.

Try this link :
http://www.ychange.com/small-business-consulting-articles.html and read some of the articles especially the ones about a business plan and starting a business.
Good Luck

Answer 2

A not for profit is not hard to start but it is hard to receive the non profit status for tax purposes. Its also hard to get money for the said business. You would need someone experienced in grant writing to help you. A good CPA will help. Try to find a "purpose" for your agency that isnt now provided in your community - grants will be easier to get - they dont like to double services in one area.