I am currently a for-profit organization that provides services to a LARGE number of low-income families. It has been recommended that since 80-90% of my clientele base have their services paid for via welfare assistance that I consider becoming a non-profit.

Is this even possible? I am currently an S-Corp and have been for the past 4 years. I am also worried about losing my "sweat equity." I want to be compensated for what I have put in and not lose out on it - I guess similar to a sale. Any recommendations?

dfitzhughjr

I am also a corporation by the way. F Jay E Inc....but the question you have to ask yourself is if tax wise this will increase you company's productivity and lower the bottom line. The company that makes the most money at the end of the day is more successful. I know the benefits to your clients are equally important to you, but if you need to compensate yourself and others to run the organization, too much tax can force your hand at the end of the fiscal year. If you go non profit, you will still be paid and can decide what you must be making to acheive sucess, but the taxation alleviation may make you a more solid corporation. A wise man told be, "A truly sucessful business, does not need it's owner." If you are the key to the function of your business, your have to begin to reshape it to run ITSELF!