I would like to convert the status of my LLC to a non-profit (fee for service) 501(c)(3). I would like to know if this is even possible and if can be done in a timely manner. I would imagine that this would require IRS approval.
In my consulting work I would like to bid for state and federal projects that are only applicable to eligible entities – one being a 501(c)(3).
Also – how does this change my liability or tax filings (if applicable)?
Great questions! Sometimes, Wisconsin Corporate Law can become complex; this is especially so when it comes to achieving status as a 501(c)(3) non-profit.
If there are no stocks/dividends, this may be possible. In Wisconsin, you would likely want to start by dissolving it and then re-incorporating with the Department of Financial Institutions as a Non-stock corporation. Then, you would need to file a 1023 with the IRS, typically including bylaws, a relevant conflict of interest policy, your articles of incorporation, and 1023 answers requiring a separate sheet. That is an elaborate filing which includes a wait-time of 4-6 months until the IRS will decide whether to approve your status.
If you do decide to go that route, it is highly recommended that you retain an Attorney to prepare the necessary documentation.