On 1/2/06, Anthony DiPierro wikilegal@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