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LLC ↔ nonprofit separation

Entities:

Entity Role
Apex STEM Education Inc. NJ nonprofit — 501(c)(3) application pending (1023-EZ submitted 2026-06-11); donations, grants, programs
Ridge Racers STEM Education LLC Separate — ops/merch optional

Canonical: Formation checklist Phase 8

Required (numbered)

  1. Separate bank accounts — nonprofit vs LLC; no shared debit card.
  2. Separate bookkeeping — distinct categories and reports.
  3. Separate contracts — vendor and sponsor agreements name the correct entity.
  4. Board approval for any nonprofit payment to LLC or related party.
  5. Fair market value for LLC services to the nonprofit — document in writing.
  6. Conflict disclosure — interested directors recuse; minutes record abstentions.
  7. Family trustees recuse on votes affecting their children’s fees or LLC payments.

If LLC provides services to the nonprofit

  1. Draft written agreement (scope, term, price).
  2. Treasurer documents FMV rationale (quotes or market comparison).
  3. Board vote without interested directors.
  4. Pay from nonprofit account only after approval; file invoice in Drive Governance/.

Annual attestation

Board minutes each year: no commingling; related-party transactions listed.

Standing warning (finance SOPs)

Do not pay LLC invoices from the nonprofit account without board-approved contract. See APEX-FIN-001.