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| *Ostroff, Fair and Company>>>Government & Non-Profit |
I want to start a tutoring company. Should I start the business as a non profit or an LLC? |
I want to start a tutoring company. Should I start the business as a non profit or an LLC? When you call it a company, it is business oriented !!. Money is needed for every endeavor.You can only work out a way for a marginal profit and keep the company going. That really depends on what you want to get out of the business. If you create the business as a not-for-profit corporation you will be unable to withdraw any profits you might make, although you would still be able to pay yourself a salary. As a LLC you will have to pay income taxes (at your marginal rate, since the LLC itself will not pay taxes) on any profit you earn, whether you withdraw the cash or not. In short, if you are trying to start a business as a source of income- LLC, if you are just doing it out of the goodness of you heart - Not-For-Profit. What are your goals for this company? Do you intend to address a community or social purpose? For example do you want to lecture for free to improve skills and knowledge in the community for a 'greater purpose? Are you prepared to follow the stringent rules and guidelines involved in operating a nonprofit? Then you would want a nonprofit, as you could apply for education grants and do corporate and individual fundraising to cover costs. Otherwise, you want a private company. LLC http://www.tuitionplaza.com/tutoring/... I think it is better to start a business as a non profit. |
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