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 Tampa Bay, Floridasubscriber 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.
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