On 1/2/06, Anthony DiPierro <wikilegal(a)inbox.org> wrote:
The excise taxes on running a non-profit organization
as a for-profit
corporation go up to 200% if you don't eventually correct the
situation. Yes, 200%, that means if you make $100 in net profits you
owe $200 in taxes. You're much better off dissolving the non-profit
and forming a for-profit corporation than running a non-profit as a
for-profit :).
That's, um, startling. However, I actually meant the WMF just getting
rid of its tax-exempt status.
Of course in reality what would happen far before any
of that took
place is that the WMF could form a for-profit company which would pay
taxes and would be owned by the non-profit. That's how the IRS wants
you to do things, in essence it's how they force you to do things.
Obey the US federal government, I shall.
--
Sam