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?
1 Answer from Attorneys
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.
Our firm is now referred by the American Bar Association (see under the New York section): http://www.americanbar.org/groups/delivery_legal_services/resources/programs_to_help_those_with_moderate_income.html
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