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    Making a difference and helping others is what we do. Learn more about our firm!

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  • Do I Need an Attorney for a Nonprofit?

    You will encounter many complexities when starting a nonprofit, and may need legal help.

    Why Hire an Attorney?
  • Start Your Business Off Right

    It is crucial that your nonprofit be setup correctly to avoid problems and ensure your success.

    Find Out What Needs to Be Done
  • We Can't Wait to Hear
    From You!

    Have a question about nonprofit law? Contact us today for a free consultation.

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Can I form a Nonprofit LLC?

Question? Can I setup my Nonprofit as an LLC?

Answer: Yes, but only under very limited circumstances would this be of benefit. In order to understand why, let’s break the one question into its two parts:

1. Can I form a Nonprofit LLC in Texas?

The Texas Business Organizations Code (BOC) does not recognize the term “nonprofit LLC” as describing a specific type of entity, but the BOC does allow for the formation of an LLC with a nonprofit purpose. Although a for-profit corporation is prohibited from “operating a nonprofit institution” (BOC §2.008), the BOC does not impose this prohibition on LLCs. This is one of the few substantive changes introduced by the BOC. As of this writing, California, Tennessee, Michigan and Minnesota also permit Nonprofit LLCs.

2. Will an LLC with a nonprofit purpose be tax-exempt?

A Texas LLC that states a nonprofit purpose is not automatically exempt from state or federal taxes. In fact, the IRS will not give a nonprofit LLC tax-exempt status unless all its members are themselves tax-exempt organizations. For example, a group of charitable organizations could form a trade group as an LLC and then be granted tax-exempt status.

So, while technically you can form a Nonprofit LLC, as a practical matter, the LLC simply won’t be accorded tax-exempt status by the IRS in enough situations to make it a viable alternative to a Texas Nonprofit Corporation.

  • At Our Firm, We Enjoy What We Do!

    Making a difference and helping others is what we do. Learn more about our firm!

    Meet the Attorneys
  • Do I Need an Attorney for a Nonprofit?

    You will encounter many complexities when starting a nonprofit, and may need legal help.

    Why Hire an Attorney?
  • Start Your Business Off Right

    It is crucial that your nonprofit be setup correctly to avoid problems and ensure your success.

    Find Out What Needs to Be Done
  • We Can't Wait to Hear
    From You!

    Have a question about nonprofit law? Contact us today for a free consultation.

    Get in Touch Now

Start Making a Difference Today

No matter what your nonprofit legal needs are, our team at Perliski Law Group is here to help.

Perliski Law Group - Dallas Nonprofit Attorney
Located at 8150 N. Central Expressway, Suite 1675
Dallas, TX 75206
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Phone: (214) 865-7542
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