Can a for-profit corporation own a non-profit corporation?
I have a for-profit corp that I use for my courier business. I would like to start a non-profit owned by my for-profit to do the following:
1. Apply for grants from private foundations as well as local, state and federal govt.
2. Give away a percentage (up to 25%) of my for-profit corp's profits as well as grant monies received to the needy, poor or underprivileged.
3. Limit my personal and for-profit tax liabilities while doing all of this.
Any suggestions would be greatly appreciated.
Yes it can. If that nonprorofit corp complies with the requirement of a 503c corp, a profit motivated corp can own it.
This is quite common. A well known corporation may have a division which does charitable work, so they keep it seperate and incorporate it as a non profit.
To fulfill your goal, you should see an accountant or a tax attorney to get you started.
You can simply setup a non-profit corporation to accomplish all the things you want to accomplish.
The non-profit is not "owned" by you or your for-profit corp. The non-profit is it's own entity. If it were "owned" then it could accumulate money and then be liquidated - which would be a profit - which it is not allowed to do.
But, that's just a technicality. When you setup the non-profit you will establish its articles of incorporation to make it work the way you want it to. Your other corporation can give 25% (or whatever you want) of your profits to the non-profit. You just have to follow the various laws.
To find out how to do it: www.managementhelp.org/strt_org/str...