giving all my company’s profits away! (Preferably without starving)

[Chris Gleo]

hey everyone!

I’m thinking about starting a c Corp that donates 100% of profits to a charitable foundation. I want to collect a reasonable salary and donate the remainder. My products competitive edge is its charitable spirit, so I want to advertise “100% of profits go to charity”
Here are my questions...
1. It is legal to record a CEO salary separate from corporate profits right?
2. Is there a way to avoid double taxation with this type of structure?
3. I can’t find a charity/foundation that meets my standards and operates within my company’s niche. So, down the road, can I have a close friend or family member create a foundation that my company will finance?

Basically, i need to keep food on the table, but I have a cause I genuinely want to help with, and I have a great product that just needs a little extra marketing edge... any advise that could help me go from here would be absolutely amazing!

Sorry if I’m missing something obvious or asking dumb questions... I technically haven’t finished business school yet

 

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[Kak]

As far as a structure is concerned, you pretty much fit the description of a nonprofit entity. I'd look into 501c3s. Nonprofits can give to other nonprofits. You can be the CEO of the nonprofit. Avoiding double taxation in a corporation is as easy as not showing a profit. As long as your deductible giving and your salary add up to more than the corporation took in, the corp made nothing and you're only taxed on an income level. Though you'll have to file at corp and individual levels. Needless to say though. Your corporate structure should be a nonprofit.

To answer your questions quickly:
1. Yes
2. Yes
3. Yes

 

[biophase]

hey everyone!

I’m thinking about starting a c Corp that donates 100% of profits to a charitable foundation. I want to collect a reasonable salary and donate the remainder. My products competitive edge is its charitable spirit, so I want to advertise “100% of profits go to charity”
Here are my questions...
1. It is legal to record a CEO salary separate from corporate profits right?
2. Is there a way to avoid double taxation with this type of structure?
3. I can’t find a charity/foundation that meets my standards and operates within my company’s niche. So, down the road, can I have a close friend or family member create a foundation that my company will finance?

Basically, i need to keep food on the table, but I have a cause I genuinely want to help with, and I have a great product that just needs a little extra marketing edge... any advise that could help me go from here would be absolutely amazing!

Sorry if I’m missing something obvious or asking dumb questions... I technically haven’t finished business school yet

I currently have a company that does something similar to this. My main concerns would be, as CEO you can pay yourself whatever you want and make the company have $0 profit and donate nothing. I've seen many companies say 100% profits go to charity but nobody believes it. Even less people will believe you if 100% profits go to your own foundation.

Does your product tie in with the charity? How can you even start this company if you don't have a charity in mind to donate your profits too? Where will your profits go if you make money next week?