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How to Start a University
Every few moths I get a call from someone who thinks they want to start a new university in the United States. These are usually one and done calls, because the would be university founder does not like what I have to say.
Starting a college or university in the U.S. is very expensive due to regulatory requirements. It is not a business that you can bootstrap. You have to have significant cash to invest before starting the process.
I am not a lawyer, and the following is not legal advice. It provides a very high level overview of the issues involved with starting a university.
Step One: Creating an organizational entity
The first step in the process is deciding what state to locate your university. Every state has different laws and requirements. It does not matter if you will have an online university without classrooms, you still need a physical office in the United States. You will need some sort of organization to control the university. This can be a non-profit or a for-profit company or limited liability corporation. The specific options will vary by state. Not all non-profits are charitable. To be a 5021C3 charitable organization, you also need IRS approval. If you are not concerned about collecting tax deductible donations, you do not need to worry about this status.
