Tax Structure

Updates

In July, 2013 some of our folks spoke with potential fiscal sponsors (The School Factory & Noisebridge). Here was the result of the discussion with Noisebridge: http://lists.sudoroom.org/pipermail/sudo-discuss/2013-July/thread.html#3141 (this thread also includes some concerns & thoughts from a few of the sudoers).

Associations

• Read about (high-level): Voluntary Associations, Freedom of Association, and Cooperatives, which can fall under various classifications below.
• California Unincorporated Association
  • Secretary of State Business Entities FAQ.
    • Relevant forms.
  • Review of law for Californian Unincorporated Associations (circa 2004).

Non-profit

501(c)(3)

Charitable Organization

External Guides

• Start a 501(c)3 Non-Profit

Socially Responsible Corporations

B Corps

• B Corporation - Structure for corporations that do social good. For more info, see this site on Couchsurfing's decision to become a B Corp.

Limited Liability Partnerships

(from Blond's Black Letter Law Outlines, 1996)

for further detail, see resources such as MyOwnBusiness.Org - Session 5: Business organization

• In a limited partnership there are two kinds of partners:
  • General partners, similar to partners in a general partnership, control the management and are personally liable for partnership debts.
  • Limited Partners do not participate in management and are not liable for debts beyond their initial investment

• In order the limit personal liability further, a corporation can exist as the sole general partner in a limited partnership with the limited partners acting as the officers of the corporation.

• This wall has been knocked down by some courts and held up by others with certain requirements, such as:
  • the corporation also exists for other purposes;
  • the state clearly allows corporations to be the sole general partner in limited partnerships;
  • the limited partners act as officers in a corporate, not personal capacity; and
  • the contracting parties are aware of the structure of the partnership.

Relevant Law, Uniform & California

UNIFORM LIMITED PARTNERSHIP ACT (2001)

California Code - Chapter 3: California Revised Limited Partnership Act (15611. - 15724.)

Incorporation Services Options

Rocketlawyer: Start an LLC

Political Organizations

501(c)(4)

Super PACs

527 Group

Labor Unions

501(c)(5)