http://www.kenniffonline.com/non-profits-houston/
How to convert to a day care rather than profit – Texas?
Currently, we are a for-profit school, ages 18 months to school age but the owner wants to be nonprofit. Is there a way to convert from and we are up and running? We are located in the Houston area.
Hello, Beatrice: Yes, a for-profit may become a class non-profit … of. A new organization, nonprofit should be formed, then this new organization should seek tax-exempt under 501 (c) (3) of the IRS. At that time, activities and assets may be transferred from the old to the new entity. Sounds simple enough, but they warn that it is not. Our company has worked with dozens of such conversions … all successfully. However, there is a lot of nuances that such a conversion. The owner should be fine with the idea that it will "own" the nonprofit. Nonprofits do not have owners. Furthermore, when the goods can be transfer (read stole), can not be sold to the new entity. And, you can not transfer the debts. If the profit has outstanding loans or notes payable, the new non-profit can not assume responsibility. I recommend you learn as much as possible. As I said, we have helped many through this conversion, but requires knowledge of what you are doing. Our website has lots of free articles and other information for nonprofit organizations … feel free to try. If we all need more help with this idea of conversion, let us know. We would be happy to help. Good luck, Greg
The Growth Coach Houston Contest for Non-Profits