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Law Educator, Esq.
Law Educator, Esq., Attorney
Category: Legal
Satisfied Customers: 117438
Experience:  JA Mentor -Attorney Labor/employment, corporate, sports law, admiralty/maritime and civil rights law
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I have a business law question about 501c(3) non profits.

Customer Question

I have a business law question about 501c(3) non profits.Suppose I found a non profit corporation. In Utah I would register my federally approved 501c(3) as a non profit corporation.
However, I'm interested in the idea of having sub LLCs under the non profit. Suppose my corporation has 3 distinct sub entities. I want those entities individually shielded from liability.So here's the question: Can someone donate to Child LLC 1 and get the tax write off, the other two LLCS are shielded and I only have to register one non profit corp?From a marketing perspective, can I say, "Child LLC 1 is a part of a non profit group and can receive tax deductible donations"?
Or is the IRS very strict in that only donations can be made to the parent 501c(3) corp?
Submitted: 1 year ago.
Category: Legal
Expert:  Law Educator, Esq. replied 1 year ago.
Thank you for your question. I look forward to working with you to provide you the information you are seeking for educational purposes only.
You can actually have multiple non-profit entities run by another non-profit. The main LLC, call it Non-profit Groups can own Child LLC-1 and can also own Homeless LLC 2 and also Education LLC 3. Each LLC would be separate and owned by main non-profit LLC. So as long as each separate LLC is registered as a non-profit on its own, they can take in charitable donations.
You would have to register EACH non-profit separately though, you cannot just have one non-profit.