Getting Money for a New Club

[Jason]

Originally Posted by oiuyt

Don't forget making unreasonable amounts of compensation/profit.

-B

Brad is actually entirely correct. If I set up an LLC, then all of the profit the company generates--in addition to whatever I'm paying myself--can go in my pocket at the end of the year (of course, if there are partners, then it is split).

Additionally, in many (if not all) states it's much easier and cheaper to create an LLC or S-Corp than a 501c(3).

[adrianhk]

Yes, but starting up many people are much more willing to help a nonprofit. You don't actually have to become 501c if you are nonprofit, because it is hard to get. The club that I fence at has almost 60 members (in two different locations), is a nonprofit, has been going strong since 1996, and we still don't have 501c. What we do for fundraising is a raffle, with prizes donated by fencers, and we have one big tournament every year, with a brochure and t shirt. Companies can purchase advertising on those.