Limited Liability Company

[Bob Wilber]

Two individuals formed a LLC for the purpose of operating a hunting camp. Estate planning was the main reason. This entity is not for profit. Only to collect funds for expenses and taxes. The IRS will consider them a partnership, unless they make an election.

Is there a way they can be exempted from filing. Non profit? 501C3? or zero profit corp?

[jsamans]

Two individuals formed a LLC for the purpose of operating a hunting camp. Estate planning was the main reason. This entity is not for profit. Only to collect funds for expenses and taxes. The IRS will consider them a partnership, unless they make an election.

Is there a way they can be exempted from filing. Non profit? 501C3? or zero profit corp?

I don't think so. Yes, the LLC can elect corporate taxation, but that won't make it a corporation in fact: the election could always be revoked later, and the structure by its nature cannot effectively guarantee the prohibition on private inurement that is necessary for a 501(c)(3) or comparable organization to obtain Federal recognition.

Also, you're saying that they exist to break even, but many for-profit businesses end up only breaking even despite their intentions. Filing is how that gets worked out; even a 501(c)(3) files an informational return.

But maybe someone else has heard of an angle to this that works.