I should be out stopping crime. Instead, I’m researching legal business structures because the Justice League doesn’t have an official tax classification.
Why? Because we technically don’t exist.
No EIN. No payroll. No official bank account (except for the Wayne Enterprises “miscellaneous security fund,” which is definitely not IRS-compliant). But as much as I’d love to keep us off the books, the government doesn’t like when billions of dollars flow through an organization with no tax structure.
So now, I have to figure out what kind of entity the Justice League should be.
The Options (And Why They All Have Problems)
1. Nonprofit Organization (501(c)(3))
🚨 Denied immediately. We tried. The IRS said no. Apparently:
• “Punching criminals” isn’t a charitable purpose.
• The League isn’t open to the general public.
• I can’t claim Batarangs as “educational supplies.”
Verdict? Not happening.
2. Limited Liability Company (LLC)
✔ Provides legal separation between the League and individual members.
✔ Earnings pass through to members, avoiding corporate tax.
✔ Allows for flexible management (aka, I remain in charge).
🚨 The Problem?
• The IRS expects LLCs to generate profit. We don’t.
• We’d still need a designated “owner.” If that’s me, I’m liable for everything.
Verdict? Possible, but risky.
3. S Corporation (S-Corp)
✔ Tax-efficient. Income passes through to members without double taxation.
✔ Reduces self-employment tax, meaning Superman won’t owe the IRS every year.
✔ Could allow for structured salaries for full-time members.
🚨 The Problem?
• The League isn’t a traditional business.
• We don’t sell a product. (Technically.)
• We’d have to file payroll taxes, and I don’t have time for that.
Verdict? Too much paperwork.
4. C Corporation (C-Corp)
✔ Full liability protection.
✔ Allows for fundraising and investment.
✔ Could offer League benefits, retirement plans, and insurance.
🚨 The Problem?
• Double taxation (corporate tax + individual tax on distributions).
• The Justice League would have shareholders.
• Someone (cough Lex Luthor cough) could buy in and take over.
Verdict? Absolutely not.
5. Private Foundation
✔ Nonprofit status, but with more control.
✔ Would let me fund the League without public donors.
✔ Could still provide some tax deductions.
🚨 The Problem?
• Strict IRS rules. We’d have to justify every expense.
• No fighting crime. Only “educational” and “public service” activities allowed.
• Superhero work would need to be rebranded as “community service.”
Verdict? Would require too many lies.
The Best Option (That I Hate the Least)
After way too much research, the best choice is an LLC with an S-Corp tax election.
✔ Provides legal protection for League members.
✔ No corporate tax—profits/losses flow through to individuals.
✔ Allows some members to be on payroll (full-time heroes).
✔ Still qualifies for business deductions (Batmobiles are a “business expense” now).
Downside? I have to file paperwork, set up payroll, and deal with corporate tax compliance.
But if it stops the IRS from asking where all the money goes, fine.
Final Thoughts
The Justice League is now officially an LLC. I didn’t sign up for this. I don’t like it. But if it keeps the government out of our business, it’s worth it.
Now, if you’ll excuse me, I have to explain to Superman why we can’t file as a farm cooperative. Again.