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Dimitry K., Esq.
Dimitry K., Esq., Attorney
Category: Business Law
Satisfied Customers: 41221
Experience:  Run my own successful business/contract law practice.
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I have an existing FOR profit Florida Corporation and we file

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I have an existing FOR profit Florida Corporation and we file as subchapter S corporation. Can I create a 501 (c)3 non profit corporation "under" my exisiting corporation? Some info: We run a Dog boarding busness. We want to start a non-profit perpetual (end of life) rescue. It will be very small, maybe 2-3 dogs we will take on at any one time and take care of them until the end of their life. We will be accepting donations for this service. We wanted to keep the same name as our existing business but add "and Rescue" at the end of it. Is it possible to form a non profit corporation under our existing busness and keep the records seperate or will we have to create a whole new corporation? (An accountant customer of ours gave us the impression that we could keep it together).

Thank you for your question. Please permit me to assist you with your concerns.


My apologies but that is simply not possible. One of the conditions of any S-Corp is that an S-Corp cannot own or be owned by other artificial entities. An S-Corp cannot create a for-profit or a non-profit entity 'under' itself because an S-Corp has to be a standalone entity--an S-corp can contract with other entities but cannot control or own others. You would need to create a whole new entity purely for non-profit needs if you choose to pursue this option in this case.


Good luck!

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