Jeep Club Going LLC, but Can Chapters of Club Be Non-Profit

[jeepclub]

My question involves business law in the state of: Texas.

We have a jeep club and we are looking to go LLC with the club, but we have some chapters that are around the United States that are run at a local level and have expressed an interest in going non-profit.

Can we maintain the main club as an LLC and have the chapters that fall under us be non-profit?

[Mr. Knowitall]

It depends on how the organization and chapters are organized. If they're independent, it should be possible. Laws governing formation of nonprofit corporations are different in each state.

[KeyWestDan]

An LLC is just a partnership with liability protection against third parties.

An LLC can't be a non-profit and there are all sorts of thorny issues with a for profit over other non-profits. There are also all sorts of inherent problems with using LLC's in this manner.

At minimum, you need to be a corporation in my view. An LLC is going to be nothing but trouble in the long term.

You need a tax attorney at minimum.