The following is OFF TOPIC, but I had to address the information in the following quote.
The following quote is from Arianhrod
QUOTE
My guess is that it depends on the tax status of the organization. You can file non-profit but still be required to pay tax, or you can be non-profit and tax exempt. I believe those records must be disclosed. If you are registered as a for-profit, I'm not so sure. However, here's the rub with that. If you are registered as a for-profit and an LLC, is your staff considered employees? If so, should they be paid?
An entity that's designated as an LLC must make that public. If it's an Inc., it can be either S Corp or C Corp. If it's an S, it's probably taxed like an LLC. Sorry, it's been years since I had business and media law; I might be wrong.
The following are excerpts from the IRS website:
What is the difference between non-profit and tax-exempt status?
Non-profit status is a state law concept. Non-profit status may make an organization eligible for certain benefits, such as state sales, property, and income tax exemptions. Although most federal tax-exempt organizations are non-profit organizations, organizing as a non-profit organization at the state level does not automatically grant the organization exemption from federal income tax. To qualify as exempt from federal income taxes, an organization must meet requirements set forth in the Internal Revenue Code. See Types of Tax-Exempt Organizations or Publication 557 for more information.
A limited liability company (LLC) is an entity formed under state law by filing articles of organization as an LLC. Unlike a partnership, none of the members of an LLC are personally liable for its debts. An LLC may be classified for Federal income tax purposes as if it were a sole proprietorship (referred to as an entity disregarded as separate from its owner), a partnership, or a corporation.
Employees of all LLCs are subject to withholding taxes.
Some corporations may meet the qualifications for electing to be S corporations. For information on S corporations, see the instructions for Form 1120S, U.S. Income Tax Return for an S Corporation.
An eligible domestic corporation can avoid double taxation (once to the shareholders and again to the corporation) by electing to be treated as an S corporation. Generally, an S corporation is exempt from federal income tax other than tax on certain capital gains and passive income. On their tax returns, the S corporation's shareholders include their share of the corporation's separately stated items of income, deduction, loss, and credit, and their share of nonseparately stated income or loss.
Sorry for the long post, the IRS is not known for brevity. If anyone wants to start a thread about the various tax statuses I will be glad to participate after May 15. To check the above excerpts, just to www.irs.gov. The search engine is pretty good.
The LLC staff issue: my understanding is that staff would be considered employees whereas owners are considered members.
Does it show that I’m a Tax Accountant?
Vicky
Sorry for double-posting, but rotfang07 posted the following just before the flames errupted. I think it is very good tongue in check humor & I think we all could do with a chuckle right now
QUOTE
Warning to all Leaky Staff from my “legal team” in London:
1. Under no circumstances are you to allow any Web Mistress (henceforth known as “MelissaTLC”) to approach or post upon your site particularly should said “MelissaTLC” be holding any form of drinking vessel that may contain the substance known as coffee. Or, according to our “medical team”, before one full hour has passed since said “MelissaTLC” last partook of said beverage. We have it on the highest authority that if this practice is not IMMEDIATELY ended the legal and medical ramifications could be catastrophic.
2. Steve is in London. We Londoners do not carefully read any posts made in New York or any of our former colonies. No posts made from London on any other sites are therefore to be taken remotely seriously, and are certainly not to be considered legally binding.
3. All rational considerations and thinking have been temporarily suspended in London due to stress. We are currently on a (caffeine-free) break.
4. All inane posts that refer to Leaky in any disrespectful, discourteous, impudent, impertinent, churlish, or contemptible way are to be referred to the Most Leaky Inquisitorial Board here in London, whereupon our dedicated and professional staff will be sent post haste to said addressees for the requisite hanging, drawing, and quartering, in pursuance of our finest and most noble traditions.
5. London has abandoned all copyright law and infringement. We no longer care whether anyone in our former colonies or Empire has stolen our ideas to make a fast buck whilst suffering under the delusion they are doing the world a favour.
6. We have renamed the Mall leading to Buckingham Palace, “Melissa Anelli Boulevard”, because it sounds classier than Steve Vander Ark’s Lane. Apparently some American has been seen claiming that he constructed it, that it really belongs to him, and has even set up a tollbooth at its entrance. Someone overheard him cry: “But you have to pay me, I built it …”, after accidentally having run him over upon refusing him payment.
Fantastic post. How does one become a member of the MLIB? 
edited to merge two consecutive posts
This post has been edited by Iheartprofessorsnape: Feb 14 2008, 11:41 PM
Feb 14 2008, 01:28 AM
