Can an LLC be a Nonprofit?

Some statesdo allow non-profit LLcs

It is my understanding that some states allow non-profit LLCs. I'm an attorney in Missouri, and a friend at the local Secretary of State office made a passing comment one day that he was seeing more and more non-profit LLC filings, which was the first I had heard of them.

I personally am still researching the issue, but I find the idea of a non-profit LLC very enticing. One distinction here in Missouri is that the non-profit corporations statute in Missouri requires 3 directors, while the Missouri LLC statute allows for single-member LLCs. As such, I think you could actually create a non-profit LLC with only one director and avoid the 3-director rule under corporations.

As LLCs are much less formal and have less meeting structure and such, a non-profit LLC would be a good thing for those looking to form a non-profit without some of the structures required of corporations. I have no knowledge of how the IRS handles non-profit LLCs, though, in regards to filing for 501(c)(3) status.

First answer by ID1115096286. Last edit by ID1115096286. Question popularity: 23 [recommend question]