QUESTION

How should I structure a new nonprofit business with a partner?

Asked on Sep 11th, 2022 on Business Law - Pennsylvania
More details to this question:
Hello. My friend and I are starting a new nonprofit business, to promote, educate, and grow diversity in equine sports. My partner runs the day to day horse operations and has existing assets (horses, tack, equipment), totaling more than 100k. I am providing all the business support such as a fully developed website, business plan, phone/email setup, social media account setup, and will be doing all the marketing, fundraising, finances, etc. What is the best way to structure our company? Should my partner have 100% ownership/shares, and I be compensated for my consulting services, either by a % of income/donations and/or a fixed hourly rate/salary? Would it be a good idea to assign a % of ownership/shares in consideration for the intellectual property I have already created (website, social media accounts and business plan)? Note: We have a CPA who is assisting with filing the Articles of Incorporation, FEIN, and 501c3 application.
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1 ANSWER

Bankruptcy Attorney serving Collegeville, PA at Nahrgang & Associates, P.C.
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Thank you for your inquiry, but I strongly recommend that you engage a business law attorney ASAP to specifically advise you regarding these answers as this forum does not lend itself to a quick answer for this very complex questions.    I trust this answers your questions, but you are welcome to call or email me on a free initial basis.     Matthew R. Nahrgang, Esquire 35 Evansburg Road, Ste 400 Collegeville, PA 19426 610 489-3041 o 610 489-3042 fax mnahrgang@verizon.net nahrganglaw.com 
Answered on Sep 12th, 2022 at 12:29 PM

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