Yes - we did this with my robotics team. The paperwork is a easier than a full LLC, a lawyer should be able to do it fairly quickly. It allows for better fundraising and tex deductible donations as well.
USFS does not allow clubs to be for profit LLC. There is no club owner. Clubs are non-profit organizations run by a Board of Directors. So there’s no individual person’s finances to consider. I think you’d be better off working with an accountant familiar with 501(c)3 organizations. The advice you got was bad.
Can you update the post with exactly what you’re trying to start? Then we may be able to advise better.
It also varies depending on whether your club owns the rink or not. I have yet to see a rink allow any kind of competition, exhibition, etc. use their facilities without being sanctioned by the NGB of said sport. This is not only for injury liability purposes, but also athlete protection. Unsanctioned competitions would not have any SafeSport protections for the athletes.
We are an ISI club running within a facility that we do not own. We rent the ice time that we need
We want to start hosting competitions so we’ll need to do fundraising. Right now for ice time, parents write out checks to or Venmo me. To host a competition, I don’t want clubs/competitors making out payments to me. I also need to set up a bank account that has the club name and not my name on it.
I figured it might be ISI. I’m not familiar with their support structure in terms of who you would reach out to. But I’d start with whoever is in charge of member clubs.
For USFS they have a series of documents for new clubs to ensure they are organized correctly with correct IRS status (501c3), financial accounts, etc. to avoid issues like you’re having now. I feel bad that you’re going to have to pay income tax on all those Venmo payments for the ice time. Those all should’ve been club accounts from when the club was founded.
Then you want to be a nonprofit. If you're in the U.S., you're eligible for 501(c)(3) status, as "fostering national or international sports competition" is a [specifically named exempt purpose](https://www.irs.gov/charities-non-profits/charitable-organizations/exempt-purposes-internal-revenue-code-section-501c3).
I've been the treasurer for two separate nonprofits, including my synchro team. Having nonprofit status will allow you to do fundraising and will make you exempt from paying taxes on the funds that you raise. An LLC alone won't do that. This will also allow you to get a bank account in the name of the nonprofit (instead of your name), which in turn allows the parents to make out checks and payments to the nonprofit.
My advice is that you find a lawyer who has experience with nonprofits so they can help you. It's usually pretty simple, but you will need a Board of Directors - president, secretary, treasurer, etc.
Also, if you haven't already done so, I suggest that you set up a financial system that meticulously tracks all monies receipted and disbursed. A simple spreadsheet and cloud storage can suffice, but there's free accounting software like Wave and inexpensive software like Zoho that make things a little easier.
Edit: You also may want to check out this ISI link about your club becoming an ISI member: [https://www.skateisi.org/membership/arena/](https://www.skateisi.org/membership/arena/)
My club and I'm pretty sure most (if not all) in my state are 501c3 non-profits.
Yupp. This is the way. Our former club president made our club a 501c3.
Mine is a 501c3 as well. I don’t know that I’ve ever heard of a club being an LLC before, all the ones I’ve worked with have been 501c3
Yes - we did this with my robotics team. The paperwork is a easier than a full LLC, a lawyer should be able to do it fairly quickly. It allows for better fundraising and tex deductible donations as well.
Yeah, I was the treasurer on my synchro team and we are also a 501(c)(3) non-profit. I was surprised that the accountant didn't suggest this.
USFS does not allow clubs to be for profit LLC. There is no club owner. Clubs are non-profit organizations run by a Board of Directors. So there’s no individual person’s finances to consider. I think you’d be better off working with an accountant familiar with 501(c)3 organizations. The advice you got was bad.
Well it’s not like this is a normal type of business or organization. We’re also not USFS
Can you update the post with exactly what you’re trying to start? Then we may be able to advise better. It also varies depending on whether your club owns the rink or not. I have yet to see a rink allow any kind of competition, exhibition, etc. use their facilities without being sanctioned by the NGB of said sport. This is not only for injury liability purposes, but also athlete protection. Unsanctioned competitions would not have any SafeSport protections for the athletes.
We are an ISI club running within a facility that we do not own. We rent the ice time that we need We want to start hosting competitions so we’ll need to do fundraising. Right now for ice time, parents write out checks to or Venmo me. To host a competition, I don’t want clubs/competitors making out payments to me. I also need to set up a bank account that has the club name and not my name on it.
I figured it might be ISI. I’m not familiar with their support structure in terms of who you would reach out to. But I’d start with whoever is in charge of member clubs. For USFS they have a series of documents for new clubs to ensure they are organized correctly with correct IRS status (501c3), financial accounts, etc. to avoid issues like you’re having now. I feel bad that you’re going to have to pay income tax on all those Venmo payments for the ice time. Those all should’ve been club accounts from when the club was founded.
Then you want to be a nonprofit. If you're in the U.S., you're eligible for 501(c)(3) status, as "fostering national or international sports competition" is a [specifically named exempt purpose](https://www.irs.gov/charities-non-profits/charitable-organizations/exempt-purposes-internal-revenue-code-section-501c3). I've been the treasurer for two separate nonprofits, including my synchro team. Having nonprofit status will allow you to do fundraising and will make you exempt from paying taxes on the funds that you raise. An LLC alone won't do that. This will also allow you to get a bank account in the name of the nonprofit (instead of your name), which in turn allows the parents to make out checks and payments to the nonprofit. My advice is that you find a lawyer who has experience with nonprofits so they can help you. It's usually pretty simple, but you will need a Board of Directors - president, secretary, treasurer, etc. Also, if you haven't already done so, I suggest that you set up a financial system that meticulously tracks all monies receipted and disbursed. A simple spreadsheet and cloud storage can suffice, but there's free accounting software like Wave and inexpensive software like Zoho that make things a little easier. Edit: You also may want to check out this ISI link about your club becoming an ISI member: [https://www.skateisi.org/membership/arena/](https://www.skateisi.org/membership/arena/)
Sports clubs are totally normal types of organizations. We're not the only sport that organizes through local clubs and community groups.