– U.S. Company Formation and Nonprofit Approval Completed Simultaneously!! –
We are pleased to announce that Global Kids Judo Network has completed its corporate registration in the United States as an LLC and has also received recognition as a 501(c)(3) nonprofit organization.
Now in our sixth year of activities in the United States, our reach continues to expand. However, operating overseas solely through our Japanese entity had practical limitations, including credibility and the ability to offer tax deductions for donations. With professional assistance, we have now successfully completed both the company formation and nonprofit approval processes. Although we are still a very small organization operating in the red, this also makes me a U.S. entrepreneur (!?). I will continue working hard to build an organization worthy of everyone’s trust and support.
1. [501(c)(3)?! LLC!? What Are They?]
I completed these procedures with the full support of Gregg, who has been helping me in Virginia. At first, I wondered: What is a 501(c)(3)? What is an LLC?
For anyone who, like me, is unfamiliar with these terms—or who plans to operate in the U.S. in the future—here is a brief explanation!!
(1) 501(c)(3)
Simply put, this is a nonprofit organization defined under Section 501(c)(3) of the U.S. Internal Revenue Code.
These organizations must be operated for religious, charitable, educational, scientific, or literary purposes, for testing for public safety, or to foster national or international amateur sports competition. They are exempt from federal and state taxes, and donors may also qualify for tax deductions. This is especially important in the U.S., where tax rates can be high (around 30%).
We applied as an educational organization, submitting detailed materials about our activities and business plans, and successfully received approval.
(2) LLC (Limited Liability Company)
An LLC is a business structure similar in some respects to a Japanese godo kaisha. Owners and employees can invest in the company, and there is no fixed term for directors, making it a common structure for individuals starting a new business.
For the nonprofit organization described above (501(c)(3)), tax procedures can become significantly more complex once annual revenue exceeds $50,000. For that reason, it is common to establish an LLC to separate and distribute revenue appropriately.
It is also said that during tax filing—which is extremely complicated!! and is called a “tax return” here—the relationship between activities and compensation becomes clearer, thereby increasing credibility.
At first, I simply followed Gregg’s advice. As I came to understand the details myself, I decided to establish both entities.
2. The Significance of Establishing U.S. Entities
Until now, whenever we asked for support, we were often asked, “Do you have a U.S. company?” or “Are you a 501(c)(3)?” Feeling somewhat hesitant, I would explain that we were conducting overseas activities through a Japanese entity or ask people to overlook the fact that donations were not tax-deductible. From now on, as a U.S.-based organization, we can carry out our activities with greater confidence—both emotionally and operationally!!
(In fact, we have previously been denied support because we were not a U.S. organization.)
Going forward, we will no longer face those challenges. The United States also has a well-established culture of charitable giving, and many people are willing to support meaningful social initiatives. We are therefore developing ambitious future business plans, including a “GKJN Membership Plan” and partnerships with elementary schools and local community networks.
That said, our first priority is to strengthen our own activities. We will work tirelessly on positive initiatives for children’s futures and build a community of GKJN supporters in the United States as well!!
We are still only at the beginning of this dream, and the possibilities for future challenges are limitless!!
For reference, the nonprofit organization will be named “Global Kids Judo Network,” and the LLC will be named “GKJN LLC”!!
3. (Special Feature) Natsumi Tsunoda Visited Our Home!!
On Monday, June 1, world-renowned judoka Natsumi Tsunoda—like Uta Abe, one of the sport’s best-known athletes and the Paris Olympic gold medalist in the 48 kg category—visited our home!!
During our competitive years, we often faced each other in randori practice. I remember thinking, “Her upper-body strength is incredible!!” It is no surprise that she later became an Olympic gold medalist.
Both of us are athletes at heart. When she said, “To be honest, training with you, Ishikawa-senpai, was the most intimidating (!?), and I was happiest when you praised me,” that was the starting signal for the four of us to finish six bottles of wine!! For the first time in a long while, we drank until I could no longer remember the night!!
Nacchan is now carefully planning her future. She said, “I want to use the dojo I will open in Chiba, Japan, as a base for connecting the world through judo.” Amazingly, we share the same vision.
We promised to work together when the time comes to connect the United States and Japan, and parted with a commitment to meet again.
Nacchan, who loves wine, said, “Let’s pursue our dreams together!! But first, next time we will take on the seventh bottle!!”
Our two children were all smiles as they were held by the charming gold medalist!!
Nacchan, thank you for visiting us!!
