A group of us are looking into starting a Church. I am a little confused as to whether or not the Church can be an LLC if in the future it may become 501(c)(3).
An LLC can qualify for Section 501(c)(3) charity status as a church or other type of charitable organization. (See Ready Reference Page: “LLCs Becoming Entity of Choice for Subsidiaries.”) Although it would be unusual, I am not aware of any reason a church could not be formed as an LLC.
I am not sure that I understand the idea that “in the future it may become” a 501(c)(3). If an organization qualifies as a “church” under IRS guidelines, no matter what its form of entity, it can be treated as a 501(c)(3) church without filing for recognition of exemption. (See Ready Reference Page: “What Constitutes 'Church' Eligible for Exemption?”) It should be treated as a church immediately, and not have to wait for some change of status.
Tuesday, February 27, 2007
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Thank you
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