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InformationForYou
InformationForYou, Attorney
Category: Legal
Satisfied Customers: 1956
Experience:  18 yrs trial attorney, professor of criminal law and ethics
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My family is planning a family reunion to be held in South

Customer Question

My family is planning a family reunion to be held in South Carolina (SC) in July 2012. As a member of the Finance Committee, I want to open a bank account (preferably a small business account) in the name of the family to manage funds (dues, fees, fundraising). Banks usually require documents such as Employer Identification Number , Articles of Incorporation/Corporation in order to open account. There are many legal requirements to this endeavor and I need advice on where to start the process of legal organization.

Questions:
1. What is the first step in this process to legally organize?
2. How should this family reunion be legally organized?
3. What legal filings would be needed for the recommended legal strucure?
4. Can the family reunion be organized as a non-profit since its primary focus is for social activities?
Submitted: 5 years ago.
Category: Legal
Expert:  InformationForYou replied 5 years ago.

InformationForYou :

Based on what you've said, you cannot create a tax exempt entity for the purpose.

InformationForYou :

You can see here:

InformationForYou :

That lists the charitable (permitted) purposes.

InformationForYou :

While you could create a company for the purpose, you'd actually pay fees to do so: to organize the company, file a separate return for it, etc.

InformationForYou :

If you nevertheless what to create a company for it - keep in mind that this would not constitute legitimate business expenses for you to deduct.

InformationForYou :

I do understand why you want to do it, but for the reasons you've stated, you can't.

InformationForYou :

Now if you wanted to create a business and as part of it the business owners (want to get together) that may be possible...but you'd have to have some income from the business- not just that they are paying in of expenses and the expenses are being paid out.

InformationForYou :

So based solely on what you've said, I don't see it working.

InformationForYou :

Good luck.

InformationForYou :

Please abide by the good faith nature of this site and click accept. (As customers wish to receive answers to their questions, we wish to receive appropriate credit for them). As this is my job, not a hobby, please do abide by the good faith nature of this site and click accept).

JACUSTOMER-hcp5cp54- :

I see that the response was primarily focused on question 4. My primary questions were #'s1, 2 & 3, which were not specifically answered.

InformationForYou :

Question 4 is answered; question 2 is answered (you can't file a document to make the family reunion a legal entity in and of itself).

InformationForYou :

If you still want to somehow create a business for questions 1 and 3,

InformationForYou :

You will go here:

InformationForYou :

Decide what kind of company you want to create

InformationForYou :

Fill out the required paperwork

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Pay the filing fee

InformationForYou :

Then you'll want to make sure that the name of the company isn't taken yet and if it isn't, register the company (using those forms)

InformationForYou :

Then you'll want to request a tax id number for the company.

InformationForYou :

Which you can do online here:

InformationForYou :

I believe I have answered your questions...

InformationForYou :

Hello?

JACUSTOMER-hcp5cp54- :

I didn't specifically state that I wanted to create a business. I stated that I want to legally organize or structure the family reunion using the family last name with the intent to open a small business bank account with the family's last name as the name of the organization. I was hoping to get a response based on experience in this situation. I know that it is common for family reunions to legally organize, I am not sure how it is done and under what structure.

InformationForYou :

I can see you're not happy with my answers. I'll opt out and see if you can get information that you feel more satisfied with.

InformationForYou :

I hope it works out