• rglullis@communick.news
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    4 days ago

    You are confusing cause and effect and you are making a pointless distinction.

    If all it took to qualify as a non-profit was to eliminate profit redistribution, we would have every sole proprietorship or small LLC entity turning itself to a 503, and then distributing its excess profit as salaries.

    • splinter@lemm.ee
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      4 days ago

      You mean 501©, and distribution of excess profit would at minimum evoke an excise tax and might cause loss of 501© status.

      • rglullis@communick.news
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        4 days ago

        You are right about the code , but you are also making my point about why it matters if the whole endeavor is classified as for-profit or not.

        • splinter@lemm.ee
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          4 days ago

          I’m definitely not doing that. I’m pointing out that the commenter above is correct and you appear to have a misconception about what non-profit means.