Conversion to Non-Profit Status
Asked by: Kira Newman - 27 December, 2012
We are taking our company to a non-profit structure. We currently operate as an S-Corp in Virginia. Is there any way to do this without dissolving the corporation or conversion to an LLC first?
We are taking our company to a non-profit structure. We currently operate as an S-Corp in Virginia. Is there any way to do this without dissolving the corporation or conversion to an LLC first?
Answered by: Ray Albert - 28 December, 2012
Kira,
The state of Virginia does not allow entity conversions of registered companies.
Unfortunately, with that being the case, you would need to form a new company specifically as a Non-Profit Corporation in Virginia to be able to use the company for such purpose.
By no means are you obligated to dissolve your current S-Corp to form a Non-Profit Company, you are allowed to own and operate numerous businesses of different types, unless of course you had no plans of using the for-profit business anymore (or if you plan to use the same name, in which case you could rename the S-Corp).
Kira,The state of Virginia does not allow entity conversions of registered companies.
Unfortunately, with that being the case, you would need to form a new company specifically as a Non-Profit Corporation in Virginia to be able to use the company for such purpose.
By no means are you obligated to dissolve your current S-Corp to form a Non-Profit Company, you are allowed to own and operate numerous businesses of different types, unless of course you had no plans of using the for-profit business anymore (or if you plan to use the same name, in which case you could rename the S-Corp).
