[ale] [Fwd: Advertising on ale.org]

DJ-Pfulio DJPfulio at jdpfu.com
Thu Aug 6 05:20:45 EDT 2015


TL;DR - we would need to be a 503c org - for less than $20K/yr, that
just isn't worth my time.  I've been there before.  It is sad that it
the way it is. Thousands of small groups would be helped greatly by
$500-$2K/yr.  The laws just don't support it. At least none that I've
seen or heard.

There are special organizations that the IRS does make easier to form
with next to trivial tax forms. We don't align with those, however.

On 08/05/2015 11:33 PM, Michael B. Trausch wrote:
> On Wed, 2015-08-05 at 23:04 -0400, DJ-Pfulio wrote:
>> There are tax implications for you if there is any exchange of money,
>> but I'm not certain how a $10 in cash exchange or pre-paid VISA would
>> be
>> seen.
> If there is *income*, yes.  Remember that tax implications exist only
> when the AGI less allowable deductions is greater than zero.  Also
> recall that the IRS requires only that clear records of inflow and
> outflow are kept, in order to properly compute taxable income.
> IF the group accepts any amount of money, I would say that the books
> should be kept as if it were a disjoint entity, even though it is not. 
>  It is enough to prove that the net result is no taxable income.  In
> fact, the IRS regularly disbands entities which classify themselves as
> businesses but only ever operate at zero or loss; it reclassifies those
> as "hobbies".
> ALE could easily be considered a "hobby".
> Anyway, creating any form of entity is a lot of work and effort, and
> functionally only worth it once there is a tax impact.  If 100% (or
> more) of income is spent on expenses—whether that is to offset Melton's
> after the meetings, or to pay for expenses such as the domain name or
> things like the meetup expense, it is (AIUI, IANAL) really not worth
> setting up a disjoint entity for.  If that number ever drops to less,
> then the options are to either stop taking money or form something like
> an LLC.
> The LLC would require a different from conventional structure to serve
> the needs of the group well, but that can be taken care of in the
> operating agreement or articles of organization.  For example:
>  * LLC members would need to be odd and low in number, but greater than 1.
>  * LLC members would not be vested by influx of asset, but rather by group election and assigned equal "membership".
>  * Operating Agreement would define all financial rules and bind the members to them.
>  * If the members cannot reach an appropriate consensus on any issue, it should get forwarded to the group for a vote, votes should be held on the mailing list, and votes should only be cast by members of the mailing list.
>  * Only members of the mailing list can be elected.
> In that case, of course, virtually all of this discussion becomes moot
> because it'd be defined by infrastructure.
> 
> 
> 
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