Whether you're wondering how to start an LLC, how to start a nonprofit, or how to combine the two—first determine organizational needs. Then who will benefit from filling the need, and how you plan to get there. Although an LLC doesn't have to be a nonprofit and can instead operate as a for-profit business—a nonprofit may operate as an LLC, but that's typically not the best choice.

First, let's look at how to start an LLC.

- Register a business name (DBA)
- Complete Articles of Organization
- Pick a registered agent
- Set up management
- Implement an LLC operating agreement
- Maintain tax requirements
- how to start a nonprofit

While registering your business name sounds easy, keep in mind that you won't be able to do so if another organization has already registered the name. You can pay a filing fee and complete the articles of organization for your state online. You’ll enter basic information such as the LLC's name as well as the registered agent's information. You, someone else in the LLC, or a trusted friend can be the registered agent, but they must reside in the same state as the business, have a physical address, and their address becomes a public record. Alternatively, you can use a service company.

By comparison, here are the steps to follow if you want to know how to start a nonprofit:

 

- Determine the right category for your nonprofit organization
- Register a business name
- Assign a board of directors
- Apply for licenses and permits
- File for incorporation
- Apply to get tax-exempt status

You can see they are similar processes; however, an LLC for-profit doesn't get tax-exempt status. Depending on your organization's mission, you may want to explore becoming a nonprofit LLC. Although, most organizations find it makes more sense to incorporate as a nonprofit because the laws for a nonprofit LLC are complex.

If you want to find out more about how to start a nonprofit, contact BDJ Non-Profit Solutions today for a free consultation.

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