Nonprofit Formation: Choosing the Vehicle
By Darren Moore
Once the decision has been made to operate in the nonprofit form, the next decision is the proper organizational vehicle. For nonprofit organizations that will ultimately seek tax-exempt status as organizations described under Section 501(c)(3) of the Internal Revenue Code, the options are charitable trust, unincorporated association, nonprofit corporation, and limited liability company. The choice of vehicle largely depends upon the aims of the organizers and anticipated operations of the organization….
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