[Community] question on legal structure / ISP
Joaquin Miller
joaquin at netmesh.us
Tue Dec 12 12:13:47 PST 2006
A. 501(c)(3) entity
At the meeting which decided to set up in Switzerland, the consensus
seemed to be that the only advantage of a second entity with
501(c)(3) status was that it would be easier for us to enable donors
to get a tax deduction for their contributions. Given our intention
to have a small budget, the consensus was that this does not seem important.
I recall, or misunderstood, or misremember two additional points:
1. Businesses providing funds can treat this as a business expense
(so do not need to treat it as a charitable contribution).
2. It is possible, by jumping through the proper hoops, to qualify a
non-resident (e.g. Swiss) entity so that contributions to it qualify
for a tax deduction.
I suggest we not think about second entity at this time.
B. Web host
The also excellent GoDaddy offers hosting services starting at $3.19
a month. The fine DreamHost starts at $7.95. I agree with Eugene
that saving on hosting is not a reason to set up a second
entity. The dollar cost of even high end hosting at DreamHost or
GoDaddy will be less that the dollar cost of maintaining a second
entity. The human cost will be much much much less.
Cordially, Joaquin
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