148-Save Money By Establishing a Non-Profit Corporation For Your Business Instead of a For-Profit Corporation: Inerview with James O'Neil from Training For Safety

Have you ever thought about the money you could save if you didn't have to pay taxes on the profits of your business? Might be nice, eh? Well, have you ever considered establishing a not-for-profit corporation instead of a for-profit company? Perhaps it might have some advantages for you! My guest is James O'Neil. James is a former police officer and now is involved in a company called Training For Safety. Having run both types of companies, James is a great guest to introduce the topic. Enjoy! Joshua Pros and Cons of a Not-for-Profit Entity Pros No Corporate Income tax, often no State or Local Income Tax Eligible for Public and Private grants Donations – Cash and Non cash (e.g., batteries) Corporate structure / Liability protection Cost savings – Insurance, business license, business discounts People view nonprofits differently IRS (kinder and gentler IRS) Lots of free or low cost assistance You are a “real” business Volunteers Cons Must have a nonprofit goal (charitable, educational, religious, literary, or scientific purpose) Expense to setup (about $1,000) Lots of time to setup (IRS and State forms & waiting for approval) Paperwork (but applying recently got easier) Lack of privacy (tax returns are on Internet) Shared control (Board of Directors, corporate officers) Book Recommendation: “How to Form a Nonprofit Corporation” by Anthony Mancuso (Nolo Press)