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Entity Structure

Overview

BNI operates a dual-entity model — a non-profit that owns and publishes the open ecosystem (software, hardware frameworks, APIs, and docs), and a for-profit that executes commercial Services, Apps, and Smart Device products built on that ecosystem.

flowchart TD
    BNIF["Big Nerd Idea Foundation\nNon-profit · 501(c)(3) forming\nOpen-source software · Hardware frameworks\nArchitecture guidelines · Developer APIs · Docs"]
    BNILLC["Big Nerd Idea, LLC\nFor-profit\nServices · Apps · Smart Devices\nHardware partnerships"]
    BNILLC -- "Sponsorship donation (~15–20% of revenue)" --> BNIF
    BNIF -- "Open ecosystem (software · hardware specs · APIs)" --> BNILLC

This is the Mozilla Foundation / Mozilla Corporation model applied at startup scale — extended to cover hardware and IoT alongside software.

Big Nerd Idea, LLC

  • Type: For-profit LLC (forming)
  • Owner: Kevin Crump
  • Website: bignerdidea.com
  • Purpose: Commercial Services, Apps, and Smart Device products built on BNI Foundation's open ecosystem; enterprise support contracts, managed hosting, custom development, consulting, and hardware partnerships with device manufacturers
  • Relationship to BNI Foundation: Primary sponsor; pays annual sponsorship donation (~15–20% of revenue) to BNI Foundation

Formation status

  • [ ] File Articles of Organization (home state, ~$50–150)
  • [ ] Obtain EIN from IRS (free, irs.gov)
  • [ ] Open business checking account in BNI LLC name using EIN
  • [ ] Update contracts and billing to use LLC name + EIN

Big Nerd Idea Foundation

  • Type: Non-profit corporation, 501(c)(3) public charity (forming)
  • Website: bignerdidea.org
  • Founders: Kevin Crump, Corey Zinn
  • Mission: Open-source software, hardware integration frameworks, architecture guidelines, and developer APIs for social good
  • Interim fiscal host: Open Collective (~3% fee, enables tax-deductible donations before 501(c)(3) approval)

Formation steps

  1. Choose incorporation state
  2. File Articles of Incorporation as non-profit (~$50–100)
  3. Draft bylaws — board structure, officer roles, conflict-of-interest policy
  4. Form initial board (minimum 3 members required by IRS)
  5. Obtain EIN for BNI Foundation (separate from BNI LLC EIN)
  6. File IRS Form 1023-EZ (projected revenue < $50K/yr) or Form 1023 (full)
  7. Receive 501(c)(3) determination letter — unlocks vendor non-profit pricing

Timeline

1023-EZ: ~$275 fee, typically approved in 2–4 weeks after submission. 1023 full: ~$600 fee, 3–12 months. Use 1023-EZ if eligible.

License strategy

Asset License Rationale
Core libraries and frameworks MIT or Apache 2.0 Maximum adoption
Hosted SaaS platforms AGPL Requires open source if hosted by others
Hardware integration specs and reference architectures Apache 2.0 Patent grant protects hardware partners; maximum compatibility
Firmware and embedded software MIT or Apache 2.0 Broadest device adoption
Enterprise add-ons and Smart Device products Commercial (via BNI LLC) Funds BNI Foundation development