We are looking to relocate to USA to start churches and are trying to set up the business structure. I have been searching through the inter...

Question

We are looking to relocate to USA to start churches and are trying to set up the business structure. I have been searching through the internet to find out that i cant set up a non profit comapny without forward inc and exp budgets for 2 -3 years. I then considered an LLC,but found another answer on this site to say it cant be converted to a not for profit. We cannot start a corporatian that i can see as we would need shares or members to have a financial stake in the company. What sort of company to i start that can become a not for profit

Answer

I recommend that you form a Nonprofit Religious Corporation under California Corporations Code Title 1, Division 2, Part 4. This includes Sections 9110 to 9690. Part 6 also provides for a so-called "Corporation Sole" which I believe is obsolete and not recommended.

You should become familiar with the requirements of the law, preferably through an experienced attorney, and design your business plan to conform to it, rather than shopping around for laws that will allow you to run it your way.

Answer

Mr. Whipple is correct that the proper form of business entity for a church in California (and any other state I know of) would be a Non-profit Religious Corporation or a general non-profit corporation. Every state has laws providing for setting up non-profit corporations that do not require shareholders or financial stakes in the corporation. So any state that does not have specific non-profit religious corporation laws would use the general non-profit corporation form. Although I have never been asked to create a Religious Corporation, I have incorporated a number of non-profits, and have served on the boards of each of them, as well as others that existed before I joined the board. If I can be of assistance with your projects, please let me know.