Case Study
A large non-profit organization dedicated to improving the level of medical care in under-developed areas outside the United States came to Thaler Liebeler LLP for advice. A principal in the organization had an innovative idea to provide consulting services to physicians in a related area. Would these consulting services jeopardize the organization’s non-profit status? Thaler Liebeler LLP worked with the principal and the organization to establish a new, for profit, entity easily accessible to users of the non-profit.
Thaler Liebeler was able to create the separate and distinct entity without imperiling the non-profit status of the original organization. The consulting services added a valuable component to the overall mission of putting interested physicians into developing areas on a much needed basis.
Principles
- There are a variety of forms under which a new business entity or a subsidiary of an existing entity may be formed. From wholly owned subsidiary, to separate and distinct LLC, S-Corp, or C-Corp.
- Careful preparation of operating agreements, articles of incorporation and partnership agreements for a new entity will insure smooth operations, proper ownership and tax status, and intended relationship to other entities.