Even though nonprofit organizations do very different kinds of work than traditional corporations, they’re still corporate structures that can benefit from an attorney's guidance. In fact, corporate laws contain specific rules and guidelines that all nonprofits must comply with. Below are a few ways a corporate lawyer can ensure you’re in compliance with the law and offer essential legal support.

What Attorneys Can Do for Nonprofits

1. Choose the Right Nonprofit Structure

There are two main types of nonprofit business structures: nonprofits and nonprofit LLCs. Both a standard nonprofit organization and a nonprofit LLC are exempt from paying taxes, but an LLC offers some additional protections, as it limits the liability of the organization's owners. A corporate law attorney will help you find the most appropriate structure for your nonprofit and its goals.

2. Have a Professional Draft & Review Documents

Like any other kind of business, a nonprofit utilizes contracts to carry out work and to define business relationships. Nonprofits also need to adopt bylaws and follow these rules when writing and circulating internal documents. The language in all of this paperwork has to be clear and legally sound. An attorney can draft the documentation necessary to the smooth operation of a nonprofit, and they can review contracts before you sign to check that the interests of the organization are protected.

3. Implement an Effective Financial Reporting System

All nonprofits are required to operate with a high level of transparency. Both state and federal governments need access to financial information to confirm that tax-exempt status continues to be warranted. An attorney will help you navigate this process, guaranteeing all financial reporting is timely, transparent, and in line with the law.

The attorneys at MacVean, Lewis, Sherwin & McDermott, P.C., have been working with nonprofit and corporate clients since 1885. Serving the Hudson Valley area, they are committed to finding the solutions that best help your organization thrive. In addition to corporate law, they also offer representation as personal injury attorneys, divorce lawyers, and estate planning professionals. Call (845) 343-3000 or visit their website to learn more about their legal services.