I mistakenly set up my nonprofit as an LLC for a year but plan to convert it to a corporation this year. What tax return should I file for last year's nonprofit LLC?

Forum|Forum|1 year ago
January 16, 2025
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I don't believe I made any money for the nonprofit last year because we were mostly setting things up, but I have lots of expenses. I'm not sure if nonprofits are allowed to carryforward losses.

Mike9241

did you request tax exemption from the iRS? Some set up what they think are non-profits but don't get IRS approval and are surprised when The IRS gives them a bill.

see this webpage for guidance

https://www.forbes.com/advisor/business/how-to-start-a-nonprofit/

rebekahapratt22Author

I'm aware of the IRS requirements to be considered a nonprofit. However, their considerations for LLC Nonprofits are much more tight and the qualifications are difficult to meet. This is why I am converting to a Corporation.

To answer my question, I'm assuming you're pointing to the idea that I will have to file the business on my personal return as a for profit LLC for this tax year, and then report as the desired nonprofit status next year after the conversion is done.