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Barbara, Enrolled Agent
Category: Tax
Satisfied Customers: 3461
Experience:  18+ years of experience in tax preparation; 25+ years of experience as a real estate/corporate paralegal.
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The head of our non-profit and also a board member is starting

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The head of our non-profit and also a board member is starting a for profit company and would like to use part of his current office as an office for the non profit. What steps would he need to take in order to do this without jeopardizing the non-profit status? Separate phones? Pay rent? Separate computers. I need to see if I can make this happen so even if I need to jump through hoops for him I will, but I am adamant about saying no if it can not be done without hazarding our non-profit.

Welcome and thank you for giving me the opportunity to assist you with your tax question.


You are on the right track. My best advice would be to keep EVERYTHING in the "for profit" SEPARATE from the "non-profit."


Will this be a collaborative venture or totally separate?

Hi, Bria.


It shows at my end that you are now offline. Please come back to me if you require further information or clarification.


Please keep in mind that documenting the structure and the various transactions needs to be done carefully to avoid legal, accounting and tax problems. Make sure you consult with someone who knows what they are doing before you proceed too far.


Thank you and best regards,


Customer: replied 4 years ago.

The venture will be totally separate.

Hi, Bria.


There is no problem with the head of your non-profit and board member using part of his office as an office for the non-profit. As I said in my earlier response, the separation must be distinct and meticulous records must be kept. The items you mentioned in your original question are a few examples of the separateness that must be adhered to if it takes place.


Please feel free to follow-up with me with any further questions you may have.


Thank you and best regards,


Barbara and 2 other Tax Specialists are ready to help you

Hello again, Bria.


Just a short note to thank you for the "excellent" rating. It is most appreciated.


Please feel free to put "for bkb1956 or Barb" in the subject line of any future questions you may have.


I look forward to assisting you again in the future.


All the best,


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