I am closing my nonprofit and creating a limited liability company. Can I transfer any money left in the nonprofit bank account to the LLC? —From the Website.
That depends on the kind of nonprofit and the kind of LLC. This is another example of the imprecise language so often utilized when talking about nonprofits. (See Ready Reference Page: “What Do We Mean When We Say ‘Nonprofit’?”)
Assuming that your “nonprofit” is a 501(c)(3) charitable organization, you can give your funds only to an LLC that is itself a charitable organization. The IRS requires it and most states will probably require it also.
If your nonprofit is not a charitable organization, and if your bylaws don’t say anything that would control the situation, you could give the remaining funds to a charitable LLC or probably to an LLC that is not a charity. With a dissolution of a non-charitable organization, the options are usually much broader.
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