“MICROMENTOR Q&A“
“Using the term “Conglomerate” serves very little useful purpose. It is a generally descriptive term, but it has no business or legal significance. In the United states it is very difficult, if not impossible, to operate a for-profit and a non-profit organization under the same company registration with the state and the federal government.
This is mostly due to the tax free nature of non-profits as opposed to the tax paying nature of for profit companies. The regulations assume a conflict of interest in combining these two domains and require not only separate registrations, but also entirely separate modes of operation.”
_______________________________________________________________________________
[QUESTION]
“I inherited our family-owned business which is a government contracting business; maintenance and janitorial services. I own a multi-media company. I am the founder of a non-profit charitable-giving organization. Can I call these ventures a conglomerate?”
[ANSWER
“A non-profit organization must have a charter and a board of directors and is run by that board. No one involved can personally benefit from the non-profit entity and it is not owned by any individual. It is public property. So you can see that mode of operation is at odds with a for-profit company like your defense and commercial businesses.
To operate legally under State and Federal law you will be required to keep your non-profit organization as a separate entity from your for-profit commercial and government operations.
For further background on these matters, please see the FREE article at the web site I maintain as an extension of my volunteer work at the following link:
You can combine your commercial and government enterprises under a single company umbrella by utilizing cost centers, which is a form of financial accounting. Please see the additional FREE article on that approach at my volunteer extensions site:
Kommentare