Sometimes a business should be formed as a not-for-profit. Don't always assume a business is really a for-profit venture.

QUESTION.
I would like to start an entertainment Web site for youths who will be able to display there talent and skills there. For instance, I will rent camera equipment so they will be able to produce commercial(s) or music video(s) as an internship, if the major is in TV production. Anything they need to receive experience we will help them do and the outcome will be displayed on the Web site. They will also be able to view tips, play games and sell items. For example, if they have a clothing line a shirt may be sold on the site. Anything to help them succeed! My following questions are:

1. I am considering making the entity of this business an LLC, do you think that is okay or should I make it a partnership?

2. Before I launch the Website I know I should have the company's name, logo etc. trademarked. Should I set-up the LLC, i.e., prepare articles of organization, tax ID application etc. (even if there is no income) before I launch the Web site or after?

3. I would like to branch off and start a nonprofit that will support the entertainment site. We will provide career counseling, have seminars and throw events for the community to attend for free. Will I be able to fund the nonprofit with the funds I receive from the entertainment site?
Thank You for all your help!!!

ANSWER.
Wow! I am impressed with your vision in the email you sent me. I think making it happen will take a lot of work on your part, but the vision and goals you hope to achieve are very commendable.

Now let's come back down to earth. What you describe is a nonprofit organization you want to form. It is not a business - or at least it should not be a business. To qualify for tax deductible donations you will have to incorporate. It is never a good idea to intertwine nonprofits with for-profits. And you never fund or support a for-profit with a nonprofit.

Nonprofits can be run much like a business. And, in fact, they should be run that way. There is no need for you to think in terms of starting a for-profit business. And you certainly don't want to start two businesses at the same time.

By the way, LLCs are not corporations. LLCs do not have articles of incorporation. They have what are called Operating Agreements that are very similar to Partnership Agreements.

You are going to need to put together a Financial & Operations Plan for your nonprofit. See BECOME A FOUNDER OF A NONPROFIT

See also, WRITE A BUSINESS PLAN

I highly recommend you read a few business plan samples to get a feel for what they are about. See BUSINESS PLANS HANDBOOK. You should be able to find a library around Washington that has the 12-volume set. Spend a Saturday at the library reading through them.

Consider learning as much as you can about nonprofits. Scroll down the following link to the nonprofits section. See http://www.jlippin.com/listmania.html.

I've given you a bunch to think about. Consider contacting your local SCORE office to schedule a 1-hour face-to-face meeting with two SCORE volunteers. See http://www.score.org/findscore/chapter_maps.html and type your home zip code in to find the office. The meeting is free. Good luck! Regards, -Jeff

Jeff Lippincott
SCORE.org Counselor
Princeton, NJ
scoreprinceton @ aol.com
www.scoreprinceton.org
www.jlippin.com