We are proud to announce our NEW community destination. Engage with resident experts and fellow entrepreneurs, and learn everything you need to start your business. Check out the new home of StartupNation Community at startupnation.mn.co

Donations to an LLC

SeanCSeanC subscriber Posts: 1
edited April 2009 in Business Planning
I have a question,
I have an LLC that operates more like a non profit but is an LLC for tax reasons and so that my board can draw an income.The way it works is we will be payed by a "sponsor" but they will get advertising out of it so they aren`t really donating, so that is all fine by law.The problem though is to supplement our income we do accept donations from the churches we go to. They don`t always donate and we don`t ask them to, but many like to.From what I have read is that this is okay if its considered a gift. We are providing a service, but it is provided for free and we don`t ask for anything. Our main source of income is advertising. Is this okay?What are the rules?


  • robertjrobertj subscriber Posts: 0 Member
    When a business (which is NOT tax exempt) receives value (cash, services or products) it has to classify the transaction as one of the following:
    A debt (loan)
    an investment (capital)
    A payment (revenue)
    The IRS may not accept your "gifts" catagory.
    I can recommend an excellent tax person
    robertj4/15/2009 5:57 PM
  • SeanCSeanC subscriber Posts: 1
    can I call it payment if it is inconsistent?
    I`m fine with paying taxes on whatever we call it haha I just want to make sure we can accept it.
Sign In or Register to comment.