I own a C. Corp. A C. Corp is the only way you will get any big-time investors to invest in your business. They also require a C. Corp due to tax laws and the benefit to the Delaware C. Corp. Also, they must incorporate the Delaware C. Corp in the state of Delaware if they re seeking investment from investors. C. Corp provides stock options meaning you grant ownership to investors meaning they are more likely to invest in the business. They do not want to invest in an LLC which has no value to them in the end.

Ashley, I've been following you for a year and NEEDED this video TODAY. Wow, speak of divine timing. Thank you!

@Ashlee_Tate

2 жыл бұрын

I'm so glad it helped! What did you end up doing? I'd love to hear an update! Are you in the tribe?

Ashley, thanks for such good ideas!

@Ashlee_Tate

2 жыл бұрын

So glad they helped!

Thank you for this video!

I run a Japanese dojo and cultural organization since 1984. Since the pandemic, we have decided to try to do something in both the nonprofit and for-profit sections. Instructional materials, give seminars, teach cultural aspects, self-improvement programs. I just got over cancer and I am at a loss with my filing status. I was always a sole proprietor but I want that to change. I now have an international audience, so this video caught my attention. Thank you so much. I have a lot of research to do

@Ashlee_Tate

Жыл бұрын

This sounds amazing! Come join us in the tribe to ask any questions along the way! I’d love to hear more and congratulations on winning your battle with cancer.

great video!!

I like this on non profit . This is something on volunteer work i have been getting into

Ive listened to this video 3 times. This is EXACTLY what Im trying to do, and do. A "virtual call center" calling public lists, giving away beneficial financial information, and if they want the service, charging the fee to perform.

@Ashlee_Tate

2 жыл бұрын

Honestly, it sounds like you have a for profit business giving a free service. Am I missing the charitable side? By the way Donovan, are you in the tribe?

Thank you soooo much for this information. I'm literally trying to figure out how to have both right now and this was sooo helpful, thank you.

@tnicolec90

3 жыл бұрын

I want to start a nonprofit helping pet owners pay for a specific medical services for their pet that is needed to save their life. To get money for the nonprofit i have decided to open a pet store selling handmade dog goods. I initially was going to keep the businesses seperate but i was just told today that i can keep them together. They recommended i do it the c corporation way that you described. However i already have my llc paperwork done and now have the option to reclassify it as a c corporation so i can do them together. What do you think would be best? The only main reason I've been given as to why i should do them together under the nonprofit is to save the 800 dollars yearly fee for the llc.

@Ashlee_Tate

3 жыл бұрын

I always recommend keeping them separate so that the funds can be tracked and/or donated. You can also partner with a nonprofit that helps pay for medical services, run your business and donate some of the profits. Or you can start a nonprofit that raises money by selling your wares.

THIS IS SO RELEVANT TO WHAT I'M DOING RIGHT NOW!!! THANK YOU!

@Ashlee_Tate

Жыл бұрын

So glad to hear! How is it coming along?

@hettiewilson9407

Жыл бұрын

@@Ashlee_Tate Thanks for responding. I'm kind of in a holding period. Not sure what my next step is right now. Just praying for direction.

Super Helpful, the 1st options is what I though, thank you so much,

@Ashlee_Tate

Жыл бұрын

Glad it was helpful! Thank you so much for watching!

Great info thank you

@Ashlee_Tate

4 жыл бұрын

Thank you so much for watching

Yes, Benefit Corporations!!!

I had the same question too. Much Value in this video.

@Ashlee_Tate

2 жыл бұрын

appreciate that! What did you decide to do in the end? Are you in the tribe by the way?

@marcelinojr.deperalta3735

2 жыл бұрын

​@@Ashlee_Tate I have just registered a for profit. I think For-Profits can deliver more value to the world when managed correctly at the same time you the owner is payed from your strategy and hardwork. This was the best option for me. I know others may choose the NonProfit, all of us has their own objectives. For the tribe, I am not in it, I don't know what it is about.😊

@Ashlee_Tate

2 жыл бұрын

👏👏👏 so proud of you for starting! Social impact can be for profit too! I love that you have the goal of giving value! That’s the key!!!

Hi Ashlee, omg thank you for this video. Ive been searching for ways to setup my museum as a non profit but also a for profit sector that sells food, memorabilia and more related to the museum in order to keep the museum sustained; you were the only one with a video that breaks down how the process works. So grateful. Im now searching for a lawyer for assistance in getting it set up.

@Ashlee_Tate

Жыл бұрын

Yeah! I’m so proud of you! Wishing you the best of luck! Come join us in the tribe to share your journey!

@kai85kai

Жыл бұрын

Having a restaurant within the nonprofit is allowed for the nonprofit. It would not be Ubit if it is unrelated. Multiple museums do this and it is allowed because it allows patrons to not interrupt their visit. I'll link information.

@NikkiBee-xc6hg

10 ай бұрын

@@Ashlee_Tate sorry for replying so late im jsut seeing this. Ill definitely join and share my journey.🤩

@NikkiBee-xc6hg

10 ай бұрын

@@kai85kai Thank you for that detail as i can use all the information i can get. Please share the link so i can review when you have a chance. Thanks again

😍😍😍

Great show 🤔 looking to have Profit for Non-Profit 2023. We had to change the model.

@Ashlee_Tate

2 жыл бұрын

Thanks so much! I’d love to hear more about your model change

@CaliforniaRussianRiverBees

2 жыл бұрын

@@Ashlee_TateHi Ashlee Profit Model for Grocery Business. Then possible Non-Profit.

Hey Ashley thanks for this info. Could you do a video on Ubit?

@Ashlee_Tate

2 жыл бұрын

Yes I can! Thank you for asking! Make sure you are part of the tribe because sometimes I do additional content like this for Ask Ashlee Anything on Mondays!

Thank you this is very helpful. Could you talk about self dealing. Like a nonprofit that owns a LLC?

@Ashlee_Tate

2 жыл бұрын

I will definitely add it to the list! Thank you so much for the feedback!

This is such helpful information, I appreciate it! Glad I stumbled upon your page :D Question - can B corps still accept donations or apply for grants?

@Ashlee_Tate

3 жыл бұрын

They cannot ask for donations unfortunately. That is reserved for nonprofits

I needed this information, thank you! Gave me some things to think about... #Hotep

@Ashlee_Tate

4 жыл бұрын

I am so glad to hear this!!!! Come join us in the tribe if you haven’t already! Grab your invitation at Ashleetate.com on the right hand side! We’d love to come along on this journey with you!

I feel asleep and this must have continued to play. Because when l work up the conference room o separate the for profit and non profit came to me in full. I mean l can see them so clearly now. It is as if a bright light is shining through my window. I can't turn away. Hahahah Thank u.

@Ashlee_Tate

2 жыл бұрын

Awe I love it! I’d love to have you come join the tribe some we can watch you grow! Go to Ashleetate.com/jointhetribe

Nonprofit yes, corporations and LLC s no paying an agent of "public office" is very unnecessary when you can just read yourself and learn as you go attorneys, by their jurisdiction, works ONLY for the court and state not the client remember the land is occupied unlawfully one must learn law on our own to get successful results rather lose money in private and public jurisdictions

Hello there nice video , I'm about to start a for profit and a non profit at 59 years old. would like more info

@Ashlee_Tate

3 жыл бұрын

Is love to help you! Grab your free invite to the tribe by going to Ashleetate.com/jointhetribe

We need to raise money to pay for things so the 1st 5 years we are not helping anyone in those years .

@Ashlee_Tate

2 жыл бұрын

I would strongly recommend helping people during those years even if it isn’t as many as you’d like but people need to see you executing your mission if you want them to donate.

Thank you for sharing your knoledge! Question, can a sibling or a relative be a board member?

@Ashlee_Tate

2 жыл бұрын

They can as long as you don’t go over 49% your board related to you or family members.

@met8924

2 жыл бұрын

@@Ashlee_Tate thanks for the reply 👍

Peace

Yes! Question. Can I form a nonprofit under a for-profit?

@Ashlee_Tate

9 ай бұрын

You can form a nonprofit alongside your for profit but the most important piece is to keep them separate as if you were running 2 separate businesses

Thank you for this video! Do you think that merchandise like t-shirts, etc. would be related enough to sell under a non-profit? For example, if the cause is mental health, and the nonprofit sells merchandise with the nonprofits name/logo, and mental health awareness messaging on it?

@Ashlee_Tate

4 жыл бұрын

Yes! I’m referring to someone helping children but owning a motorcycle shop. Something completely unrelated to their purpose. Great question

@wordwriter

4 жыл бұрын

@@Ashlee_Tate Okay, thank you! :)

@seedfromatree

Жыл бұрын

I think you accept donations, and offer a free T-shirt for certain levels of donations/ that way you’re not “selling” anything, only gifting for promotion and accepting donations

How do you use your for profit to cover event for your nonprofit until your non profit has funds to pay for insurance.

@Ashlee_Tate

2 жыл бұрын

Hi Carnella, can you explain what you mean by 'cover event'?

Can you please share the link with me you referenced in this video about nonprofits using the Benefit Corporation as their for-profit subsidiary? Thank you

@Ashlee_Tate

2 жыл бұрын

jeremychenlaw.com/for-profit-subsidiary-of-a-nonprofit/ This gives you a run down of how this works. Generally, a Benefit Corporation involves the for profit income and the impact so you wouldn’t use it specifically as a for profit subsidiary. You would just start a Benefit Corporation to accomplish both

If a person wanted to open a c-corporation and want most of their funds to go to a non-profit they are part of, would they still be allowed to work at the non-profit? For example, could the executive director at the non-profit also be the owner of the c-corporation? Let's say they want to open a coffee shop unrelated to the non-profit mission, yet they want to continue to be the executive director at the non-profit. Could they do both? I know board members can't overlap, but can employees/volunteers of the non-profit overlap with the business. I hope this makes sense.

@Ashlee_Tate

2 жыл бұрын

Yes, you can do this however the funding and the like you said the board must remain separate. That way you would be working for a for profit while running the nonprofit and donating funds from your for profit business. On some matters you would need recuse yourself from the vote such as salary or a partnership with your company. Rachel, are have you joined the tribe yet?

@rachelabbruzzi5077

2 жыл бұрын

@@Ashlee_Tate thank you so much! This information was beneficial. And I do not think so. How do I join?

@Ashlee_Tate

2 жыл бұрын

@@rachelabbruzzi5077 Got it! Just go to www.ashleetate.com/jointhetribe and grab your invitation!

Can the services that people pay to the separate for-profit be considered tax deductible to the buyer?

@Ashlee_Tate

2 жыл бұрын

No, not a separate for-profit business. Those funds can be donated from the for-profit to the nonprofit but the customers would not receive a tax deduction.

Can the services that people pay to the for-profit be considered tax deductible to the buyer?

@Ashlee_Tate

2 жыл бұрын

If you have this as a part of your nonprofit, there’s a possibility.

What about if you already have a for-profit agency but want to create a non-profit to qualify for Public Service Loan Forgiveness (PSLF)? I am a licensed clinical social worker in private practice but don't qualify for PSLF because I have to be a non-profit. I am a single-member LLC. This rule needs to be revised, but unfortunately, getting change will take an act of Congress. Please advise.

@Ashlee_Tate

Жыл бұрын

Thank your for the question. I don’t have enough experience with the PSLF but wouldn’t advise starting a nonprofit to qualify for anything. They require a lot of work and focus (board management and so). You can, however, start up a nonprofit while also having a for profit they just need to be kept completely separate.

Interesting, The water in the backgound is very distracting

@Ashlee_Tate

Жыл бұрын

Apologies for the water! Hope the info helped! Let me know if I can answer any questions for you!

At 8:41 you said that you can advertise them together. I can see how the for-profit can advertise the nonprofit, but I don’t see how the nonprofit can advertise the for-profit without risking getting in trouble with the IRS. I really don’t know much about the subject, but it seems like there could be a problem with the non-profit benefitting an individual. Maybe a little bit of that is okay?

@GrowingPains917

3 жыл бұрын

Here are some terms that might be relevant, but I don’t understand them. boardsource.org/resources/private-benefit-private-inurement-self-dealing/

@Ashlee_Tate

3 жыл бұрын

James this would only be an issue if it was unrelated business income and you were spending majority of your efforts there then yes the IRS would frown upon that. What I’m referring to is more of the structure of your nonprofit rather than combining two separate businesses. Most nonprofits have some form of for profit wrapped into their business...think selling t-shirts or an event. These are profit building activities that support the nonprofit bottom line

@GrowingPains917

3 жыл бұрын

@@Ashlee_Tate thanks for the response! That makes sense. I still have a lot to learn, so thank you for your time! Great videos by the way!

@Ashlee_Tate

3 жыл бұрын

Appreciate that!! If you’re getting started we’d love to have you join us in the tribe! You can get your invitation at Ashleetate.com

@nadaudjacques-louis7426

Жыл бұрын

This was awesome Ashley. Reading both of your comments answered one of my questions 😇… I created an LLC shirt business, since the nonprofit needs to be corporation, is it ok to leave the shirt business as LLC, if I plan do the unrelated business income tax?

I definitely need help with starting my business please help

@Ashlee_Tate

2 жыл бұрын

I'd love to help! Have you joined the tribe?

😅😅😅

Which is better non or for profit?

@Ashlee_Tate

Жыл бұрын

Honestly it really depends on your goals for the organization. If you have a charitable aspect then o would say a nonprofit. If you have a desire to make a profit without the supervision of a board I would suggest a for-profit

Can i ask my customers if they want to donate to my non profit?

@Ashlee_Tate

Жыл бұрын

Absolutely!

Hi thanks for this video I'd like to talk in person with u please ! Its important so important

@Ashlee_Tate

2 ай бұрын

Hi absolutely! Go to my website Ashleetate.com/workwithme

Hi Ashley, thank you very much for the information. I was referred to you by someone we mutually know. How can I create a non-profit business for my freelance copywriting and meditation music youtube channel? My target audience is individuals who have autism and other forms of disabilities. My copywriting business will center around this by creating content for companies that advocate and support mental health and wellness for the community.

@Ashlee_Tate

2 жыл бұрын

Not sure how I missed this comment but are you wanting your copywriting business to be completely charitable? If not, I would suggest providing those services for a low cost or for free but create your business as a for profit and donate that time. We only want to be a nonprofit when your overall mission is completely charitable. Have you joined the tribe yet?

Can I create a for profit to assist battered women instead of applying for 501c3 status?

@Ashlee_Tate

4 жыл бұрын

Absolutely but people will not be able to donate their support. What exactly are you looking to do?

@miamiles7996

4 жыл бұрын

The Socialife Diaries Purchase single family homes for domestic violence victims.

@Ashlee_Tate

2 жыл бұрын

@@miamiles7996 will they need to pay for the housing or will the housing be charitable? You can absolutely do this if you have the means to purchase the homes and accomplish your mission but if it is more of a charitable mission I would suggest a 501c3 for tax exemptions and the possibility of donations.

@miamiles7996

2 жыл бұрын

@@Ashlee_Tate Oh ok thanks

@Ashlee_Tate

2 жыл бұрын

@@miamiles7996 great question!!

The back noise is annoying. It takes away your great message.

@Ashlee_Tate

29 күн бұрын

I’m so sorry! I’ll try to re-record. Thanks for letting me know!

For someone that wants to sell product within a non profit, can you set a price for those products? Or is it solely donations.

@Ashlee_Tate

6 ай бұрын

Products can be priced. Like t-shirts or swag. Event tickets and so on

@rayneparker7421

6 ай бұрын

Thank you