Legal Question in Business Law in Virginia

Can a sports team be classified as a 501c3 (tax exempt) organization if it is established as an LLC instead of a non-profit? And what would have to be done for tax purposes for both an LLC or non-profit for sponsorships?

Asked on 5/31/19, 12:09 pm

1 Answer from Attorneys

Frank Natoli Natoli-Legal, LLC

In order to use the LLC for federal tax exemption purposes each member of the LLC must have their own independent tax exempt status. So the LLC is not a good vehicle for a new NFP entity. You will have to form a non-stock corporation for that.

Regards to your second question, I'm really not sure what you are asking here.

Before you commit to anything, I suggest that you consult with a lawyer in private and discuss your objectives in more detail. You can start by calling around to several for a free phone consultation, get some insights then pick the best fit to work with.

If you would like to discuss further over a free phone consult, feel free to contact me anytime that is convenient.

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DISCLAIMER: this is not intended to be specific legal advice and should not be relied upon as such. No attorney-client relationship is formed on the basis of this posting.

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Answered on 5/31/19, 12:27 pm

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