On May 27, 4:48 pm, Sean T Evans <[email protected]> wrote: > Some of the issues that have been brought up: > * Jurisdiction of Incorporation
Some interesting comments on possible locations for formation: http://www.myllc.com/which-state-to-form-llc.aspx > * LLC vs S-Corp I think the only compelling reason to form an S-Corp is if we want to file for non-profit status. However, I am told that the non-profit filings are rather onerous and time-consuming. Otherwise, the S-corp suffers from additional taxes and filing requirements as compared to an LLC. > * Corporation Membership (All PMC vs Subset (including implications for > minors and non-US Citizens) Every member of the Habari LLC will have to receive a Schedule K-1 and report Habari income and expenses on their personal tax returns. This is a non-trivial addition to tax prep that I would not wish upon anyone, let alone a large group of people. For this reason, I am in favor of limiting the LLC membership to a small subset of people (perhaps the founding four?). LLCs may file articles of organization which create a larger pool of managers. I propose making all PMC members managers of the Habari LLC. Changes to the management board would also be easy to specify in "meeting minutes" rather than in state filings which declare changes to the LLC membership. > * motivations (financial, liability protection) I would further add protection of Habari assets (namely make sure others do not try to claim copyright of our code). > * for-profit vs non-profit (these have _very_ specific legal definitions > and implications) See above on LLC vs S-corp --Blake --~--~---------~--~----~------------~-------~--~----~ To post to this group, send email to [email protected] To unsubscribe from this group, send email to [email protected] For more options, visit this group at http://groups.google.com/group/habari-users -~----------~----~----~----~------~----~------~--~---
