How does it work when you have a non-profit and sell products like books or cd's. Do you just pay the tax or open another business like LLC?
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That’s a great question Dima,
Most all the answer provided already and great answers but I would just add what’s the intent for selling the books through the non profits? If it’s to generate revenue to run the non profit organization then you are exempt from taxes as well but if it’s for other purpose beside the organization status then you will have to pay unrelated business taxes. But those type of activities are the one that usually raise red flag if they are not correctly reflected on the organization 990 tax filing.
Lam P. Chuol
Lam Tax Service, LLC
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