question Nonprofit with some for profit - Partnership or LLC?

[Eric Lyon]

This is a personal question (One small family business owner to another)

One of my personal projects in an another niche is starting to come to fruition after several setbacks. It's now time to reassess our legal filing status, in case we should change it.

My wife and I like our current Partnership filing on the project as a family and see that we can establish a private club as such, but each club member would operate more independently and be liable for their own business ethics, documented in a way that relieves all other club members from any blow-back to their own brands due to club association.

We even have the option to file for tax exemption under the "IRS Social Clubs" clause. But this would limit club members ability to benefit financially from the club itself and make all investments a group liability. We like the idea of a club with benefits (Financial or otherwise).

We can go the LLC route, which would relieve any legal burden from the club members, but it would result in potentially losing control of said club and add a lot more red tape and filing each year.

• Which option do you think is better for a small club of like-minded individuals (Keeping it small with 10 to 20 members max)?
  
• How are you filing for your online club?

I'm going to make a decision soon, but figured I would source the question. I'm pretty set in remaining a partnership filing with my wife, but I can't see from the outside in since I'm too involved in it. I would like to hear others opinions in case I'm missing something.