If you are planning on launching a non-profit organization, you could be thinking that you will not be burdened with all the legalities that traditional for-profit businesses deal with, so you do not have to worry about hiring a legal team, but this is grossly incorrect. In truth, while non-profit organizations have vastly different agendas than their for-profit counterparts do, they still have corporate structures that will require the expertise of a seasoned corporate lawyer.
Without this professional, your organization stands the risk of breaking laws without your knowledge, and this will translate into exorbitantly priced fines or, in the worst-case scenario, jail time. Before you assume that hiring a corporate lawyer for your organization will be an inessential expense, check out the following reasons why you need to hire a corporate lawyer when running a non-profit.
A corporate lawyer will help you select the right structure for your organization
Similar to for-profit companies that need to have a business structure, so does your non-profit organization. Generally, there are two main options that you can consider, a non-profit LLC or a standard non-profit. Both these options will protect your organization from being subjected to taxes that for-profit businesses have to pay. However, it is worth noting that opting for a non-profit LLC structure will provide your organization with further safeguards.
For example, when you choose a Nonprofit LLC structure, your liability and that of any other owners of the organization will be limited. You should be cognizant of the fact, though, that since non-profit organizations need to be incredibly transparent, you should never try to take advantage of these protections, so it is best to have a corporate lawyer on your legal team to make sure that this does not happen.
A corporate lawyer will draft and scrutinize legal documents
As long as you are running an organization that will require you to work with other professionals, you will have to draw up contracts regularly. These contractors not only have to be straightforward in their communication but they should be legally binding, too. Moreover, all internal communication within the organization will be done via paperwork, and all these documents need to adhere to the organization's bylaws, as well as legal requirements.
To eliminate the risk of misunderstandings, whether with your business connections or your organization's employees, you must leave the drafting of these documents to a corporate lawyer. This professional will also scrutinize any paperwork that you need to sign beforehand to ensure you are not putting your non-profit at risk of any pitfalls down the road. Reach out to a corporate lawyer, such as www.carterwestlaw.com, to learn more.