Name Change Project? This triggered my interests in law so I dug into it a little. Apparently there is an
entire non-profit grift out there to help Trans people hire lawyers to act as legal agents for a fucking name change just so they don't have to go through the "trauma" of doing it themselves. Jfk.
I believe TransLifeLine (of all places, and through their microgrants program) and others will help transgendered people change their name when and where red tape keeps the process from going smoothly.
There is a need for this kind of service for those people who truly want a name and identity that presents themselves as the opposite gender. As for those who simply want to LARP, they deserve to fend for themselves.
Bets on them actually following through and releasing their forms properly?
TLL usually files their forms on time, albeit after filing for extensions, because there are penalties for filing tax returns late. If the Tranch files its return timely with or without an extension, it will be interesting to see what's all on the first 990-series return. (990 is the form number for nonprofit tax returns).
We'll also have to see if this nonprofit is on a calendar or fiscal year.
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I still have yet to catch up on the latest drama, but here are some thoughts regarding the whole LLC/nonprofit/trust thing.
While it's possible for someone or an entity to have all of those at the same time, they need to be created and maintained by competent people and professionals. With such professionals charging a decent amount for these services, I'm not confident the Tranchers can have all three of those entities at once and not screw something up. It's very easy to do accidentally let alone intentionally or through indifference. In addition to tax returns, there's often additional paperwork that has to be maintained and kept on file in order for the entities to remain recognized in good standing.
Also, there's the issue of sales taxes for online sales if they're still doing that on a significant scale. This has become more of a big deal now that states can impose their sales taxes on out of state vendors selling to people within their state (e.g. Tranchers in Colorado selling to someone in Illinois). Some states use a dollar amount threshold, others use the total number of transactions involving that state, and some may use a combination. It's complicated enough that one almost needs to consult a competent tax pro to help navigate through the tangled web of multi-jurisdictional sales tax law.
The biggest issue I see for the Tranchers is commingling of funds. Often, this means mixing business and personal expenses by paying them through the same account. In this case, though, it's both easy and tempting to pay a non-profit expense through the LLC or vice versa even though it could create huge issues if the books or a tax return were ever to be examined (aka audited). My late boss once told the story of a former client that found this out the hard way.
I'm also curious to know how the LLC is set up for tax purposes. If multiple people will have the income flow through to their tax returns, it will have to be treated as partnership or corporation -- both of which have particular rules when it comes to partners/shareholders receiving money from the entity or taking out money for personal use.
TL;DR - Such a setup could work if done with competent professionals and people who have some idea of what they're doing in terms of management and bookkeeping. One mistake, whether intentional or accidental, can cause a shitload of problems from regulatory bodies such as the IRS or state treasury (or its equivalent in Colorado).
E: Spelling/clarity