topic 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? in Business & farm

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?

rebekahapratt22 — Tue, 03 Feb 2026 06:23:32 GMT

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.

Re: 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?

Mike9241 — Fri, 17 Jan 2025 04:51:37 GMT

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/

Re: 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?

rebekahapratt22 — Fri, 17 Jan 2025 11:17:30 GMT

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.