Running a for-profit business out of a 501(c)(3) is totally do-able. See, for example, 501(c)(3) business incubators. The main rules are that the business should pay a fair amount for what it uses, even if that's just buying a membership, and that no particular business should get special treatment.<div>
<br></div><div>Caveats to consider:</div><div>* Income from renting to businesses could be considered unrelated business income, which might affect your public support test.</div><div>* If your community has personal property tax, you may be responsible for paying tax on any equipment you keep at the space.</div>
<div><br></div><div>IANAA, as always, consult a CPA who specializes in non-profits for the final word.</div><div><br></div><div>Happy Hacking,</div><div>-Ed<br><br><div class="gmail_quote">On Wed, Feb 22, 2012 at 5:04 PM, Lokkju Brennr <span dir="ltr"><<a href="mailto:lokkju@gmail.com">lokkju@gmail.com</a>></span> wrote:<br>
<blockquote class="gmail_quote" style="margin:0 0 0 .8ex;border-left:1px #ccc solid;padding-left:1ex">IANAL and IANAA, but...<br>
I'd just have your business rent space from the 501(c)(3).<br>
Essentially, create a "business" level hackerspace membership. The<br>
rent/membership would not be tax deductible as a donation for your<br>
business, but would be tax deductible as a business expense. For the<br>
non-profit, it is just like any other income.<br>
<br>
Loki<br>
<div><div class="h5"><br>
On Wed, Feb 22, 2012 at 2:00 PM, Jonathan Bowen <<a href="mailto:jonbowen234@gmail.com">jonbowen234@gmail.com</a>> wrote:<br>
> We are starting a Makerspace in Pensacola.FL. Emerald Coast Community of<br>
> Makers (<a href="http://eccmakers.com" target="_blank">eccmakers.com</a>)<br>
><br>
> We are still working on our By-Laws and setup our corporate structure.<br>
> Someone brought up a point that I wanted to see if anyone else has run into<br>
> problems with.<br>
><br>
> Is it legal for me to use the equipment in a Non-Profit makerspace to run<br>
> my business?<br>
><br>
> The space will most likely file for 501c3 status. I run my own company out<br>
> of my house right now. <a href="http://www.corseceng.com" target="_blank">www.corseceng.com</a> I want to move most of my<br>
> production equipment to the space for use by the members and to get it out<br>
> of my house :) I plan to spend a lot of time down there. I'm already<br>
> planning on purchasing larger equipment for the space as money is made<br>
> available.<br>
><br>
> I will not entertain clients in the space. I do not plan to make it my<br>
> office but I will be producing my products at the site and with the space<br>
> equipment.<br>
><br>
> Thanks!<br>
><br>
> Jonathan Bowen<br>
><br>
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</blockquote></div><br><br clear="all"><div><br></div>-- <br>Edward L. Platt<div><a href="http://elplatt.com" target="_blank">http://elplatt.com</a><br><div>248.320.5061</div></div><br>
</div>