Non Profit Llc
Do I have to register as a non profit company/organization to receive donations?
PLEASE HELP !! I started a business where its based on people donating things and I revise it and resell. I would give them a write off for the value of the dress and they could include it in their taxes. Now would I have to register my company as a non profit or can it still be registered as LLC or S corp. I do not want any problems with the IRS.
As you describe your operations here, this does not qualify as a non-profit. You cannot “give them a write-off.” It is a profit-making business.
If your operation were a genuine non-profit, proceeds would have to go to support the charitable purposes of the organization — like the Goodwill thrift shop supports the real work of the organization. Selling goods is merely a fundraising device in such a scenario.
Consult an attorney. It sounds like you have potential legal problems here. Tax problems, too. You needed to consult an attorney before you started this up. Now it appears that you have created a big mess that has to be straightened out fast or you are in trouble. If, for example, you convinced anyone to donate to your “non-profit” when you legally are not, you could possibly be charged with criminal fraud. See a lawyer!