Any benefit to starting a non profit making business?

[waynaferd]

Probably dumb, I'm sure, but having a big garage full of tools I have always dreamt of having a "hot rod shop" or what have you....however, I have a fulltime career I kinda like with nice benefits/retirement so I wouldn't have the time or really be able to afford to actually do "work" in said garage.....

To cut down less on any business, I love to tinker on the old Willys jeeps, so maybe just fill that niche. But nobody around here has one

Anyway, are there any tax breaks (property, utility bills, tools, accessories, etc) to gain?

Probably pipe dreams, since I wouldn't make a dime no matter how fancy a sign I hung out front, but would there be any good reason to actually try this?

Just did taxes today and got to dreaming

Thanks for any reality checks, LOL

 

[Roidrage9]

?

 

[thatbloke]

unless you can prove your business has the intention to pursue profit making intent, you can be held liable for any tax deductions you claim, and then held in court you are pursuing a tax avoiding scheme ( sole intention of the business is for tax avoidance benefits), this is illegal

the only non for profit business exempt from these conditions are religions, charities, youth programs etc

so unless your running a charity you cannot do as you wish, there are also different tax laws and reporting requirements for charities and religious institutions which make a non=profit business very hard to gain a benefit from

dont worry, you are not the first person to have this idea, thus the government has laws in place to make sure you cant pursue your idea

obviously i am from Australia and our tax laws are not identical to the U.S, but i find it highly unlikely that your country would have simple loopholes in its tax system, and generally most tax systems foundation in law is generaly the same other then variations in tax offsets, deductions, rates etc,

but the enforcement and operation in tax law is generally the same in most countries, especialy ones that are all IASB compliant (australia and U.S both being this)

 

[Ness]

Extremely simple and watered down answer....

Creat the kind of business you want. Have an attorney set up a separate articles of organization for a non-profit. When you bill you clients/customers for services/goods rendered by your biz, you request that they make a donation to your charity for the amount of the bill instead. Olay! That's just one of a billion ways....

 

[thatbloke]

Creat the kind of business you want. Have an attorney set up a separate articles of organization for a non-profit. When you bill you clients/customers for services/goods rendered by your biz, you request that they make a donation to your charity for the amount of the bill instead. Olay! That's just one of a billion ways....

you have to have proof of an active charity organisation in this case, alwise you are charged with fraud

this is illegal

 

[Crowler]

Probably dumb, I'm sure, but having a big garage full of tools I have always dreamt of having a "hot rod shop" or what have you....however, I have a fulltime career I kinda like with nice benefits/retirement so I wouldn't have the time or really be able to afford to actually do "work" in said garage.....

To cut down less on any business, I love to tinker on the old Willys jeeps, so maybe just fill that niche. But nobody around here has one

Anyway, are there any tax breaks (property, utility bills, tools, accessories, etc) to gain?

Probably pipe dreams, since I wouldn't make a dime no matter how fancy a sign I hung out front, but would there be any good reason to actually try this?

Just did taxes today and got to dreaming

Thanks for any reality checks, LOL

Hey the most outlandish dreams have sometimes become fantastic businesses.

I would say forget about the nonprofit part. Have you done more than just hang out a sign?

I do think that you are onto a possible good niche. Have you checked online to see if there are other businesses that concentrate on Willeys?

I say pursue your dream, invest as little money as possible. Give away something for free on a website such as the info on various parts for a Willeys and then start slowly with various parts for sale, offering to do certain repairs etc.