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Companies and Not for Profit

bowenbowen Sup?Registered User regular
edited October 2010 in Help / Advice Forum
Let's say I run an OSS project and let's say we want to sell an upgraded product (while still maintaining GPL for the GPLed parts) through the project. I'm not really looking to make $texas or anything, just enough to pay the bills of the OSS project.

What are the things I need to look out for? Isn't this technically a non-profit company at that point? The only thing that will be paid (thus far) is for work going into the upgraded product.

Since we don't have a warehouse or store, we don't have to charge sales tax, but I'd still need to take into account money for income tax wouldn't I?

I'd imagine it'd be wise for me to get an EIN and file for non-profit status too, so, income tax is assessed on the project and not on myself.

Can anyone shed anymore light and am I thinking about this right?

not a doctor, not a lawyer, examples I use may not be fully researched so don't take out of context plz, don't @ me
bowen on

Posts

  • DeebaserDeebaser on my way to work in a suit and a tie Ahhhh...come on fucking guyRegistered User regular
    edited October 2010
    What your describing isn't a "non-profit company", it's just a company that doesn't exist yet and isn't making any money. I am not an accountant, but it sounds like you need to register your company as a sole prop or C(S?) corp with the state.

    You may not even need an EIN if you can get paid/pay yourself as a contractor, but again I am not an accountant.

    Deebaser on
  • bowenbowen Sup? Registered User regular
    edited October 2010
    That's what confused me because "Product" was going to pay for what "Open Source" was doing basically, paying for their infrastructure. But still relying on volunteers for the open source part.

    bowen on
    not a doctor, not a lawyer, examples I use may not be fully researched so don't take out of context plz, don't @ me
  • VisionOfClarityVisionOfClarity Registered User regular
    edited October 2010
    Getting 501 C status is not easy and I'd suggest you get in touch with a lawyer who can assist you with setting up a nonprofit. Nonprofit law is pretty specific and as has been pointed out just because your company doesn't make money it doesn't make you a nonprofit.

    VisionOfClarity on
  • VisionOfClarityVisionOfClarity Registered User regular
    edited October 2010
    Also, there are varying types of 501 C based on what kind of nonprofit you are and you have to register both with the state and the feds.

    VisionOfClarity on
  • bowenbowen Sup? Registered User regular
    edited October 2010
    That's fine too, if I do go that route I'd like to keep the income separate from mine though for obvious reasons. If something comes after me, I don't want to affect the OSS, and if something goes after the OSS I don't want it to affect me.

    LLC maybe?

    bowen on
    not a doctor, not a lawyer, examples I use may not be fully researched so don't take out of context plz, don't @ me
  • VisionOfClarityVisionOfClarity Registered User regular
    edited October 2010
    That depends entirely on the company, who will make up the company, how it will be funded and want kind of shield you want/need. You really should talk to a lawyer about this.

    VisionOfClarity on
  • bowenbowen Sup? Registered User regular
    edited October 2010
    VisionOfClarity wrote: »
    That depends entirely on the company, who will make up the company, how it will be funded and want kind of shield you want/need. You really should talk to a lawyer about this.

    Now if only I could find a lawyer willing to donate time to an OSS project and it'd be good. 8-)

    bowen on
    not a doctor, not a lawyer, examples I use may not be fully researched so don't take out of context plz, don't @ me
  • VisionOfClarityVisionOfClarity Registered User regular
    edited October 2010
    Check out law schools at least and the SBA to start with. I'm really not sure how this would qualify as a nonprofit or what 501 C it would even fall under. You can find the info about incorporating with your state's Attorney General on their website most likely.

    VisionOfClarity on
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