VIDEO PODCAST: Using a Single-Member LLC as a Nonprofit Subsidiary [SUBSCRIBERS-ONLY]

Ben and Mike discuss tax, legal, and strategic considerations related to the use of single member limited liability companies (LLCs) by nonprofit organizations, including how and why nonprofits use this type of subsidiary structure, tips for drafting the Articles of Organization and Operating Agreement, and other issues such as charitable solicitation registrations and donor acknowledgment letters.

CHAPTERS:

00:00 - Intro

01:38 - What a single-member LLC is and how it is treated for tax purposes

05:00 - The reasons a nonprofit might want to use a single-member LLC

12:00 - How to form a single-member LLC, including drafting the Articles of Organization and Operating Agreement

15:52 - Addressing the potential hesitancy of the Board of Directors to use a single-member LLC

18:82 - Using separate EINs, bank accounts, and respecting a single-member LLC’s formal separateness in general

20:05 - Charitable solicitation registrations, donor acknowledgment letters, and IRS guidance that may not apply

22:45 - Deciding whether or not a single-member LLC is worth the trouble

25:46 - Closing thoughts