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Rachel,<br><br>Do you think it might help if you contacted people who you do know, who used to be on the board, if they can remember how they started things?<br><br>Mitch.<br><br><br>----------------<br>> Date: Fri, 8 Feb 2008 11:24:39 -0800<br>> From: rachel@xtreme.com<br>> To: noisebridge-discuss@lists.noisebridge.net<br>> Subject: Re: DBAs and LLCs and 501(c)3, oh my! (was Re: [Noisebridge-discuss] Meeting notes posted for Thu 7th)<br>> <br>> Does anyone know someone involved with managing any similar organization <br>> here whose brain we could pick?<br>> <br>> I used to know people running the San Francisco Pool Association, which <br>> has nothing to do with hacking but is a member-based organization not <br>> trying to turn a profit. I checked their website last night and <br>> unfortunately all the current officers are people I don't know, but I'm <br>> going to shoot them an email anyway to see if they'll talk a little bit <br>> about how they're organized, what they like & don't like about it, and <br>> how much it costs.<br>> <br>> I think we have, or can get, some of this info from other hackspaces <br>> elsewhere, but I think it would be useful to talk to other CA <br>> organizations specifically.<br>> <br>> Rachel<br>> <br>> Andy Isaacson wrote:<br>> > On Fri, Feb 08, 2008 at 09:22:24AM -0800, Matt Peterson wrote:<br>> >> An LLC appears to be the logical least-path-of-resistance at this <br>> >> point, mostly because non-profit money tracking needs to be very <br>> >> extensive and an unknown "thumbs up" commitment from various <br>> >> government levels for approval. A concern also exists on setting up a <br>> >> non-profit correctly to factor in board member insurance. This is not <br>> >> to say a 501c3 isn't the best option, again just not the easiest for <br>> >> the initial setup months.<br>> > <br>> > I'd just like to expand on my thinking here, since I seem to have the<br>> > most knowledge given my shiny new Nolo press books. (Kinda scary, eh?)<br>> > <br>> > First off, if you have *ANY* willingness to help make this happen on the<br>> > legal front, please come do legal homework with me Saturday around 4 PM<br>> > in the mission! I don't want to be the sole resource here. Exact<br>> > location to be announced, email for details.<br>> > <br>> > Starting out with a DBA gets us a bank account and the beginnings of an<br>> > official group identity. (Given that we don't want to make interest on<br>> > our bank account for tax reasons, and so we'll have several thousand<br>> > dollars sitting there doing nothing, banks should be falling over each<br>> > other to hold our money for us.) The costs are pretty minimal: under<br>> > $100 in fees plus a bunch of annoying time spent waiting in line at City<br>> > Hall. Given that we have monies we would like to start collecting --<br>> > more specifically, I have money I want to donate towards the cause<br>> > starting immediately -- there really isn't any reason not to do this<br>> > now.<br>> > <br>> > <br>> > There appear to be two routes to take from there:<br>> > 1. incorporate as a California LLC, a for-profit entity.<br>> > 2. incorporate as a California non-profit corporation.<br>> > 2a. Shoot for 501(c)3 status.<br>> > 2b. operate as a "fraternal organization" akin to the Shriners.<br>> > (this is managed under other sections of 501(c).)<br>> > <br>> > I've considered and dismissed the following possibilities:<br>> > - a different for-profit organization (C corp, S corp, partnership)<br>> > (the llc is specifically tailored to the for-profit version of what<br>> > we're trying to do here; if we can't go nonprofit, LLC is the really<br>> > obvious choice.)<br>> > - incorporating in a different state<br>> > (several people have recommended against this. There are papers and<br>> > fees associated with being an out-of-state corp operating in<br>> > california, plus two sets of rules to deal with.)<br>> > <br>> > It is possible (though it may be somewhat expensive, say maybe $4k in<br>> > legal costs) to start out as an LLC and transition to a non-profit.<br>> > <br>> > Both LLC and nonprofit have expenses associated with them; it looks like<br>> > paperwork and fees are going to cost us a minimum of $1k per year.<br>> > <br>> > -andy<br>> > _______________________________________________<br>> > Noisebridge-discuss mailing list<br>> > Noisebridge-discuss@lists.noisebridge.net<br>> > https://www.noisebridge.net/mailman/listinfo/noisebridge-discuss<br>> _______________________________________________<br>> Noisebridge-discuss mailing list<br>> Noisebridge-discuss@lists.noisebridge.net<br>> https://www.noisebridge.net/mailman/listinfo/noisebridge-discuss<br></body>
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