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
Radical Personal Finance
Joshua J. Sheats, MSFS, CFP, CLU, ChFC, CASL, RHU, REBC, CAP
4.2 • 1.9K Ratings
🗓️ 6 February 2015
⏱️ 65 minutes
🧾️ Download transcript
Summary
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)
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Transcript
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| 0:00.0 | Have you ever been sitting there at tax time staring glumly at your business tax return? |
| 0:05.6 | Looking at the number on that little line called Total Tax Due and wondered if there were |
| 0:11.2 | another way. |
| 0:20.0 | After all, wouldn't it be cool if you could start a corporation that didn't owe any taxes ever? |
| 0:27.0 | Well, there is such a corporation and it's called a not-for-profit corporation. Interesting idea. Welcome to the Radical Personal Finance Podcast. My name is Joshua Sheets. Today is Thursday, |
| 0:49.1 | February 5, 2015. And today we talk about not-for-profit corporations as compared to for-profit |
| 0:57.8 | corporations not a deep attorney-type conversation we're gonna stay big picture in general. We're going to talk |
| 1:04.4 | with a businessman who has operated within 911 dispatcher and and what do they call them in that? |
| 1:26.4 | Not the dispatcher, the person that takes the call. |
| 1:28.2 | The dispatcher is the one who sends the people. |
| 1:30.5 | But now is involved with a company called Training for Safety and as you'll |
| 1:35.8 | hear in the interview they had a choice some years ago and their choice was to whether or not |
| 1:41.2 | to organize as a not-for-profit corporation as |
| 1:46.2 | compared to a for-profit corporation. |
| 1:49.1 | And this is a very interesting planning idea. |
| 1:50.9 | I'm glad that James actually emailed me with the idea and |
| 1:54.0 | I'm glad that he approached me. It's something that was on my radar screen as a topic of |
| 1:58.0 | further research but I haven't made the time to research it yet and so I |
| 2:01.6 | was glad when James emailed and I said hey would you just want to come on and talk about it? |
| 2:04.8 | And I love that he came on as a business person from a business perspective to talk about the, |
| 2:10.8 | talk about the, you know, the various benefits and disadvantages of a not-for-profit |
| 2:16.3 | corporation I hope you find this interesting I hope you find it enlightening I hope |
... |
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