A Limited Liability Company is a for-profit business entity that can have a private fundraiser. Knowing the applicable federal, state, county and local laws can make the difference between a successful or disastrous event.
An LLC is a privately owned entity subject to the law of the state in which it was created. The LLC is a hybrid form of business combining the benefits of a corporation and a partnership. Federal and state laws do not permit not-for-profit charitable organizations to operate as LLCs because of the need for public regulation of charitable activities and disclosure of the collected monies.
Types of Private Fundraisers
An LLC can operate any type of private fundraiser. Private fundraisers can collect monies or goods, can sell or purchase donated products, can give services at no charge or offer an amusement, game or recreation event with the proceeds benefiting the LLC or a private cause. The type of fundraising event is not restricted by the LLC business form.
Laws, Licenses, Permits And Regulations
An LLC's fundraiser is not exempt from any law. Permits must be obtained for the locale and activities. Taxes must be paid as required by law.
Lori E. Iwan has been a prolific writer on legal and financial topics since 1991. She has been published in "For The Defense," "The FDCC Quarterly" and the "Annual Law Practice Management Review." Ms. Iwan holds a Bachelor of Arts in finance and a Juris Doctor from the University of Illinois.