[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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