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New Member
posted Jan 16, 2025 3:41:32 PM

I mistakenly set up my nonprofit as an LLC for a year but plan to convert it to a corporation this year. What tax return should I file for last year's nonprofit LLC?

I don't believe I made any money for the nonprofit last year because we were mostly setting things up, but I have lots of expenses. I'm not sure if nonprofits are allowed to carryforward losses.

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2 Replies
Level 15
Jan 16, 2025 8:51:37 PM

did you request tax exemption from the iRS?  Some set up what they think are non-profits but don't get IRS approval and are surprised when The IRS gives them a bill. 

 

see this webpage for guidance

https://www.forbes.com/advisor/business/how-to-start-a-nonprofit/ 

 

New Member
Jan 17, 2025 3:17:30 AM

I'm aware of the IRS requirements to be considered a nonprofit. However, their considerations for LLC Nonprofits are much more tight and the qualifications are difficult to meet. This is why I am converting to a Corporation.

 

To answer my question, I'm assuming you're pointing to the idea that I will have to file the business on my personal return as a for profit LLC for this tax year, and then report as the  desired nonprofit status next year after the conversion is done.