Classifying as a nonprofit organization has always been a popular choice for Nevada business owners when deciding on the classification of their new business entity. Not all businesses can be classified as a nonprofit or 501(c)(3), however. To qualify for 501(c)(3) status, an entity must be formed for charitable, educational, literary, religious, or scientific purposes. A 501(c)(3), as many people know, is eligible for federal and state tax exemptions - and thus drives the popularity of the classification. In this blog, we will go over things to keep in mind if you're thinking of forming a nonprofit organization.
There are many things at the top of every business owner's mind when they launch their company. This may include raising capital, revenue, sales, marketing, getting clients and customers - and rightfully so. There would be no company to manage without revenue. However, intellectual property is among the last things that a start up thinks about and it shouldn't be.
Starting a new business can be an exciting process. When you are ready to do so, it is important that you choose the best legal entity structure within which your business will operate. Some people make the mistake of simply opening a business without taking the time to go through the business formation process. If you do so, you run the risk of exposing yourself to the potential reach of creditors. Each of the types of business structures provides different levels of protection, different tax impacts, and different reporting requirements.