I agree with the recommendation to incorporate. The main reason to
seek a 501 designation is the exemption from taxes for most revenue. I
am guessing that we will run the corporation at a break even
standpoint, which should make the tax exempt status moot. The
advantage of the 501(c)3 is that donations are deductible, but you are
limited to "charitable" purposes. These purposes are sufficiently
broad to encompass the hackerspace concept. The $25,000 barrier is a
501 threshold for filing a tax return. Below this threshold you only
need to file a post card, otherwise you need to file a tax return
demonstrating which revenue was taxable and which is not. If we do not
go down the 501 road, we will need to file a corporate tax return with
the IRS every year.
I think the 501(c)3 would be the best 501 option, but I do not believe
that we need to pursue the 501(c)3 right away. I would recommend that
we incorporate the appropriate language of the 501(c)3 into the
charter. The disadvantage to doing this is that it prevents any profit
from being dispersed and it costs an extra $50. The advantage is that
we save $150 and the need to modify the charter if we decide to file
for 501(c)3 status.
John