Is Sole Proprietorship the best way to start a business for poetry readings and novelties? Can you be a non-for profit and Sole Proprietor? How much can the CEO make if this is possible?
- Not-for-profit is generally about religions and schools and organizations with social purpose. Don’t confuse the legal status of not-for-profit, which is about not paying taxes on profits, with the fact that poetry readings and novelties is not a business that anybody expects to make a profit. There’s a lot of legal tape involved with being a not-for-profit, and since you’re probably not going to make profits anyhow, why bother?
- However, I’m not an attorney. You should ignore me and ask an attorney you can trust. Check references, ask everybody you know, look for somebody with experience in small business and preferably also non-profits. The answers to your questions depend a lot on the specifics of your special case.
- I bet you’re going to end up as a sole proprietorship, not making a profit, but paying yourself as much as you possibly can. Take the money you bring in, subtract expenses, and consider yourself very lucky and very successful if the CEO’s salary is a matter of choice.
- Not-for-profits pay salaries to employees. They are run by foundations. If the salaries to employees get much above what the government considers market rates, then the organization might lose its not-for-profit status.