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Can a non-profit organization with federal tax exempt under section 501(c) form a child commercial company? Of course, the small business is not the main theme of the mother company, just a consequence.

For example, a university (which is no-profit incorporation) can establish child companies to commercialize its patents, how?

My question is mainly about charity organizations. Can they run a commercial business without registering a separate company?

I do not mean NOT-PAYING taxes. Definitely, the child company will tax on commercial revenue, but can be hosted under supervision of a non-profit incorporation?

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You need to run the specifics by a tax accountant who specializes in this sort of structuring. It can get complicated. FYI, if you've not checked into it, if you're close to a larger university, they will often have SBA associated advisors in their "small business development" departments. These folks are often quite knowledgable and can steer you in a good direction. Also, believe it or not, the IRS itself can be very helpful if you just call them up and ask.

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