Why an LLC is Better than a NonProfit

When it comes to starting a business, which requires more work—starting a nonprofit or forming a limited liability corporation?

The answer depends on several factors. First, consider the following questions:

– What is your goal for forming an LLC or a nonprofit?

– Is it focused on a cause?

– What is the funding situation?

Nonprofits usually rely on donations and have to go through a lot of paperwork to get tax-free donations.

If your organization receives funds but also has expenses like payroll and utilities, an LLC may be more suitable, offering liability protection and simplicity.

Nonprofits can be costly and time-consuming to register, impacting the organization’s budget. Instead, consider a public benefit corporation as an alternative that allows both profit motives and contributions to the public good.
Watch this video to know more details. For more guidance, join our Ask a Lawyer Anything live sessions on our YouTube channel: https://www.youtube.com/@surgelaw or contact us directly.