{"id":5144,"date":"2021-09-20T14:31:58","date_gmt":"2021-09-20T19:31:58","guid":{"rendered":"https:\/\/content.findlaw-admin.com\/ability-law\/smallbusiness\/starting-a-business\/can-an-llc-be-a-nonprofit.html"},"modified":"2026-04-28T14:18:00","modified_gmt":"2026-04-28T19:18:00","slug":"can-an-llc-be-a-nonprofit","status":"publish","type":"page","link":"https:\/\/www.findlaw.com\/smallbusiness\/starting-a-business\/can-an-llc-be-a-nonprofit.html","title":{"rendered":"Can an LLC Be a Nonprofit?"},"content":{"rendered":"\n
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Can an LLC Be a Nonprofit?<\/h1>\n\n
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\n By FindLaw Staff<\/a> | Legally reviewed by Catherine Hodder, Esq.<\/a>\n | Last updated\n
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The last updated date refers to the last time this article was reviewed by FindLaw or one of our contributing authors<\/a>. We make every effort to keep our articles updated. For information regarding a specific legal issue affecting you, please contact an attorney in your area<\/a>.<\/em><\/p>\n\n <\/div>\n <\/details>\n<\/section>\n\n\n

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Yes, to qualify to tax-exempt status<\/span> in 2026, a non-profit LLC<\/span> must meet these specific criteria:<\/p>\n

State Compliance:<\/strong> The Articles of Organization<\/span> must state a purpose limited to 501(c)(3) purposes.<\/p>\n

IRS<\/span> Filing:<\/strong> The LLC must file IRS<\/span> Form<\/span> 1023 for tax-exempt status<\/span>.<\/p>\n

Ownership Limits: <\/strong>Members must be other 501(c)(3) organizations or governmental units<\/span>.<\/p>\n

Dedicated Assets:<\/strong> The Operating Agreement<\/span> must mandate that assets remain dedicated to charitable purposes<\/span> even upon dissolution.<\/p>\n\n <\/div>\n\n\n\n

When people refer to nonprofits, they often mean a nonprofit corporation<\/span>. This is because many of the founders of nonprofits choose to incorporate. Due to the many requirements for forming a nonprofit <\/span>limited liability company<\/span>, it could be easier to organize your nonprofit as a corporation instead of an LLC.<\/p>\n

Form your LLC with confidence.\u202fOur trusted partner LegalZoom has packages starting at $0 + filing fees.<\/a><\/i><\/b><\/p>\n

Nonprofit Corporation<\/span> vs. Nonprofit LLC<\/span><\/strong><\/h2>\n

What is the difference between a nonprofit corporation<\/span> and a nonprofit LLC<\/span>? At its core, a\u00a0nonprofit<\/a>\u00a0serves the public. The nonprofit purpose<\/span> may be educational, religious, charitable, or literary. Even though there are many types of nonprofits, they have one thing in common: they are not formed to make a profit.<\/p>\n

A\u00a0corporation<\/a>\u00a0and an\u00a0LLC<\/a>\u00a0are types of business structures<\/span>:<\/p>\n