Two Plus Two Publishing LLC Two Plus Two Publishing LLC
 

Go Back   Two Plus Two Poker Forums > Other Topics > Business, Finance, and Investing

Notices

Business, Finance, and Investing Making money, investing in markets, and running businesses

Reply
 
Thread Tools Display Modes
Old 12-29-2011, 12:17 PM   #1
old hand
 
twonine29's Avatar
 
Join Date: Nov 2005
Posts: 1,250
Starting a Semi-Pro Football Team (LLC or Nonprofit?)

Looking to start a semi-pro football team with 2-3 other guys. The league has been established for a while, and currently has 11 teams. The league itself is non-profit, but a couple of the teams run as an LLC and the rest run as Non-Profits.

We're looking to get most our money from local sponsors. (We'll need about $8K in sponsorship money, bare minimum, to make it work) +player fees.

Is it best to start this as an LLC or a non-profit/501(c)(3)?

Are businesses more willing to sponsor a Non-Profit?
Are we leaving potential profits on the table if we go the Non-Profit route?

What are the advantages/disadvantages of both?
twonine29 is offline   Reply With Quote
Old 12-29-2011, 04:32 PM   #2
old hand
 
twonine29's Avatar
 
Join Date: Nov 2005
Posts: 1,250
Re: Starting a Semi-Pro Football Team (LLC or Nonprofit?)

Is there a better place to put this? Do I need to be more specific?

We're not in this to get rich, we're doing it cause we played on the team last year and it was run horribly and the team had to fold in its first year. We're doing it cause it sounds fun, so non-profit was our first thought, but we don't want to make a rash decision that ends up costing us later on.
twonine29 is offline   Reply With Quote
Old 12-30-2011, 03:10 AM   #3
grinder
 
Join Date: Jul 2006
Location: Rhino
Posts: 407
Re: Starting a Semi-Pro Football Team (LLC or Nonprofit?)

Non profit will cost a little more (500-2k) to set up/run, involve a bit more time/effort, but will allow any money you/sponsors donate to be a tax deduction. From the point of view of the sponsors they are just gonna write it off as advertising to the LLC so its really no different. If the nonprofit were to make money potential "profit" could just be paid out in salaries (like MLB or insurance companies) but I cant imagine this isn't much of a concern. There are a few other advantages for the nonprofit but it'd need to be a bigger venture to take advantage of them.

It really wont make that much difference either way. If it is mainly your money supporting it or you don't have a sponsor lined up I'd go non profit. I'd do a LLC/C-corp if a sponsor was lined up or I wanted to put the least amount of money into it.
JacKnight21 is offline   Reply With Quote
Old 12-30-2011, 05:58 AM   #4
old hand
 
twonine29's Avatar
 
Join Date: Nov 2005
Posts: 1,250
Re: Starting a Semi-Pro Football Team (LLC or Nonprofit?)

Quote:
Originally Posted by JacKnight21 View Post
Non profit will cost a little more (500-2k) to set up/run, involve a bit more time/effort, but will allow any money you/sponsors donate to be a tax deduction. From the point of view of the sponsors they are just gonna write it off as advertising to the LLC so its really no different. If the nonprofit were to make money potential "profit" could just be paid out in salaries (like MLB or insurance companies) but I cant imagine this isn't much of a concern. There are a few other advantages for the nonprofit but it'd need to be a bigger venture to take advantage of them.

It really wont make that much difference either way. If it is mainly your money supporting it or you don't have a sponsor lined up I'd go non profit. I'd do a LLC/C-corp if a sponsor was lined up or I wanted to put the least amount of money into it.
Anyone in agreement here? LLC sounds simpler and less start up cost, and sponsors won't care either way?
twonine29 is offline   Reply With Quote
Old 12-31-2011, 12:02 AM   #5
Carpal \'Tunnel
 
crashjr's Avatar
 
Join Date: Apr 2006
Location: Smokin crack til stars comes back
Posts: 10,625
Re: Starting a Semi-Pro Football Team (LLC or Nonprofit?)

What do the other teams do, and why? Have you asked the league or the owners/board members of the other teams?

This doesn't seem like a spot to reinvent the wheel, just do what makes the most sense after talking to the other owners.
crashjr is offline   Reply With Quote

Reply
      

Thread Tools
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off



All times are GMT -4. The time now is 03:49 PM.


Powered by vBulletin®
Copyright ©2000 - 2014, Jelsoft Enterprises Ltd.
Content Relevant URLs by vBSEO 3.6.0 ©2011, Crawlability, Inc.
Copyright 2008-2010, Two Plus Two Interactive