I have been working on a startup over the past 2 years now. After a lot of consideration, I have decided that the success of the startup is
more important than monetizing the startup. Because of this, I want to start some type of non-profit legal entity for my startup. I have done research on non profit organizations, and they require a board to be formed. I have a very distinct vision for this start up and don't want to give control away to other people. Also, I could not take a developer's salary if I were to start an NPO. I have no want of monetizing this startup. I have no plans of running advertisements on my website, as they would actually be detrimental to my vision for a startup. I don't plan on trying to get funding
from capitalists or angels because they usually want a stake in the company and I'm not after money. I do plan on taking donations.
I want to use the donations on hosting, and if the site takes off, a developer's salary for myself, so I can work on it full time. I plan on running this startup until my last breath, and there is not an amount of money it can be bought for.<p>What is the best type of legal entity to form for a person in my situation?<p>Is creating a successful startup without any goal for riches just a pipe dream?
<i>> What is the best type of legal entity to form for a person in my situation?</i><p>Is it remotely possible that what you're doing might result in legal action taken against you by one of your users? If so, I'd go with an LLC to separate your personal liability from your corporate liability. If not, you might be fine treating it as an S-Corp. I would suggest the LLC, though. [This is not legal advice. I am not a lawyer.]<p><i>> Is creating a successful startup without any goal for riches just a pipe dream?</i><p>Not at all. What would lead you to think it's unreasonable?