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MenuIs it possible to fund a microschool through a small business?
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Funding a business through another business has legal implications. You need to take care of few things here
1. Ensure the micro school is listed as a subsidiary
2. The funding business is the corporate parent and conglomerate which has rights to distribute funds between its subsidiaries. If not , then you need to create a parent structure first . Eg: Alphabet funding Google business.
3. There is disclosure about this funding and you allocate part of your funds so that school has continued funding
4. Make a resolution with your board of directors and make this part of your regulatory filing
5. If the school is not for profit , then you can consider doing this as a CSR activity . You need a board resolution passed even for this.
Please ensure proper corporate governance is maintained.
Hope this helps . Happy to get On a call if you need more info.
Hi
Firstly, it's great that you want to help people. It's also great that you have a business that is doing well from a financial point.
I am not a tax expert, but you would need to check the tax implications of funding one business from the profits of another. I do believe that this is possible, but a feasible tax structure would need to be setup. Regardless, I would NOT use profits from one business to fund the other, but rather think of a business model (+ grants, donations ect.) as a means of funding.
As for grants and social services:
Social services: from my knowledge, if you mean the official government social services, then they don't have much of a budget. As for grants: you most definitely can apply. Just take into account that it takes a lot of time, and they often require you to be a registered entity (non-profits of sorts).
I am a mentor on Startups.com, an international lecturer on entrepreneurship and negotiation, and a commercial startup lawyer. I've successfully helped over 400 entrepreneurs, startups and businesses and I would be happy to help you. When scheduling a call, please send me some background information and the 2 main questions you want answered so that I can prepare in advance (to give you maximum value for your money). My reviews: https://clarity.fm/assafben-david
Good luck
- Please consult with a CPA (Certified Public Accountant) and a lawyer.
- Also, you can (if you choose to) find a CPA who knows about the blockchain space. Particularly Decentralized autonomous organizations (DAOs). https://www.investopedia.com/tech/what-dao/#:~:text=The%20developers%20of%20the%20DAO,anywhere%20in%20the%20world%20anonymously.
The answer here itself should not be considered as financial or legal advise.
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