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J. Warren
J. Warren, Attorney
Category: Business Law
Satisfied Customers: 2249
Experience:  Experience in general business transaction and formation matters.
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I have an LLC in CA that I am considering converting to a non-profit.

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I have an LLC in CA that I am considering converting to a non-profit. My LLC is a small film company dedicated to creating inspiring, educational content. I work closely with another non-profit dance company and plan to create projects that highlight women's issues, Dancing through Parkinsons, Stroke recovery, etc.
I believe, because of the work I do, that I would be in line for grants and well as charitable donations.
How difficult and how expensive is it to proceed that idea and convert from and LLC to a non-profit?
Thank you for your time.
Elizabeth Gracen
Hello! My name is ***** ***** I look forward to helping you today.
It is not difficult to convert to a non-profit but it is technical and requires the proper State and IRS filings to create a non-profit. Here is a general outline provided by Small Business Magazine that my clients have found helpful:
In general the IRS will not grant a single member LLC owned by an individual tax exempt status. Therefore, it is likely required to convert an LLC to a Corporation. Again, this may be accomplished but it is a technical endeavor.
The initial filings and on going compliance such as the business operation needing to be ancillary to your business is essential and I would recommend using a local business attorney that routinely assists non-profit organizations. Once the non-profit is given its non-profit status by the State and IRS it is key to not lose the status as all the benefits of a non-profit will be terminated and be subject to penalty and potential tax liability.
I would budget a $1800 to $4000 to properly retain local counsel to complete all necessary forms and to provide assurance a non-profit has been set up appropriate in order to be grant exempt status. Here is a link to the California State Bar Lawyer Referral service that can provide you contact information of a non-profit business lawyer:
All my best & encouragement.
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