Is there a way to manage art classes without creating a non profit organization or an official school?

Question

Still looking for a new career here. I have an idea for an art school but before I go through all of that I would like to create a couple of art classes for students where I'd hire the teachers, buy the supplies, set the curriculum, etc., but I don't want the hassle of filing non profit papers (it would come out of my pocket to start until I could find supporters to help). I'd rather the classes be mine and not the government's. Any way to do this legitimately without getting in trouble (financial or otherwise)? Are there things I absolutely need to do or have before I get started? How can I protect myself? Thanks for all of your serious answers.

Answer 1

Do not hire the teaches directly. Have them work as self-employed contractors. Otherwise you will have to set yourself up as a business, pay payroll taxes for the employees, be responsible for any workman's comp issues, and high insurance to protect yourself.

If they are self-employed they are required to pay all taxes associated with the job. It relieves some the legal protection and insurance costs for you.

You will need to apply for a tax id or EIN# and register your business name (does not need to be a non-profit) with the state. They will research to make sure the name is available as well. There is a small cost usually under $250 dollars.

I would choose doing an LLC and you can do research on that subject on the internet. It gives you a little bit more legal protection.

When you buy supplies as a business then you don't have to pay the sales tax in some cases.

Make sure you get an umbrella insurance policy or something like it. Get with a business insurance agent to see what you need.

Other issues are where are the classes being held and liabilities with the location or accidents.

You may in the end need to check with a lawyer as well but that is up to you.

Also check out your local SBA office. They have great info and classes you can take.

Answer 2

i am basically in the same position

Answer 3

A nonprofit isn't "the government's". A nonprofit is an independent business.

If you try to do this individually, you are going to get in a great deal of trouble doing this outside of the auspices of an existing nonprofit organization, outside of an existing school, starting your own nonprofit organization, or starting a for-profit company: you will be held liable for any thing that happens to anyone on site at your "school", you could be sued for not protecting children by requiring everyone who works with them to undergo a criminal background check, you will be taxed for any payment anyone makes to you for this "school", and on and on etc.

You can either start a nonprofit organization (recruit a board of directors, convince them to donate some start up funding, convince them to hire you, file appropriate paperwork, etc.), find a nonprofit or school willing to sponsor your program (willing to pay you and to allow you to use its facilities), or start a for-profit company.

If you aren't willing to go through the "hassle" of filing paperwork, you are in no way to ready to undertake this very serious endeavor.