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Incorporation of range and 501(c)(7) status


Middle Man

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I voted no on the non profit status for one reason. All of the clubs in Colorado would not qualify because they discount fees to members vs nonmembers.

If you own the range you will have a much larger investment and may be able to require membership and all that comes with it, but you will not be allowed to have nonmember use of your facilities and be able to legally maintain this status....

If you want tax links I'll post 'em :wacko:

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I voted no on the non profit status for one reason. All of the clubs in Colorado would not qualify because they discount fees to members vs nonmembers.

If you own the range you will have a much larger investment and may be able to require membership and all that comes with it, but you will not be allowed to have nonmember use of your facilities and be able to legally maintain this status....

If you want tax links I'll post 'em :wacko:

Yep the members vs non members use provision is somewhat problematic. I would hate to not be able to hold USPSA matches (or other competitions) and exclude non member guests.

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You don't have to give up yet. If you are in an area with large shooter numbers it still may be worth it, but you'll definitely need the services of a gag, gasp, cough, whisper...tax attorney or CPA that specializes in not for profits.

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We are lucky to have CPA's and an Attorney that graciously take care of the paper work. It is a little more headache to be incorporated, but is worth it IMO. Officers do not get paid for service (reimbursement excluded), and for a thankless job we offer 'free memberships' to help.

One possible workaround for non-members at matches is to include a section in your bylaws that states (paraphrased) non-members will be sold a one day member pass as part of the match fee... Of course double check this as law is NOT my line of profession. Another suggestion is to find a club and officer that has been around the block so to speak. There are plenty of options and pitfalls to avoid!

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I voted no on the non profit status for one reason. All of the clubs in Colorado would not qualify because they discount fees to members vs nonmembers.

If you own the range you will have a much larger investment and may be able to require membership and all that comes with it, but you will not be allowed to have nonmember use of your facilities and be able to legally maintain this status....

If you want tax links I'll post 'em :wacko:

Please post tax links. Am I understanding correctly that if you hold non profit status that you cannot discount fee's to members vs non members???? Am I also understanding correctly that if you hold that status, that you cannot allow non members to use facility as in visiting shooters to a USPSA club shoot.??? Need info on this.

Thanks,

Bob :wacko:

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OK, here are some links....

501©(3) "...foster national or international amateur sports

competition (but only if no part of its activities involve the

provision of athletic facilities or equipment)...."

501©(7) Clubs organized for pleasure, recreation, and other

nonprofitable purposes, substantially all of the activities of

which are for such purposes and no part of the net earnings of

which inures to the benefit of any private shareholder.

IRS Pub 557

Interesting discussion of Amateur Sports issues

Internal Revenue Code

Treasury Regs 507©(3)

Treasury Regs 501©(7)

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  • 7 months later...

Speaking as an attorney, it is easier to setup a for-profit company than a non-profit. To setup a non-profit, you have to deal with a boatload of IRS regs (and consistently comply with those regs year after year), whereas you don't with a for-profit.

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