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How Does Limited Liability Affect a Nonprofit

ASU Lodestar Center

In particular, “nonprofit” is a term associated with state law, while “tax-exempt” is a term associated with federal tax law. Interested in learning more about financing an NPO? While LLC laws vary from state to state, an LLC generally: Doesn’t need to file an annual report. Can I Deduct It? 26 USC § 501(c)(3).