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¶
- Choose incorporation state
- File Articles of Incorporation as non-profit (~$50–100)
- Draft bylaws — board structure, officer roles, conflict-of-interest policy
- Form initial board (minimum 3 members required by IRS)
- Obtain EIN for BNI Foundation (separate from BNI LLC EIN)
- File IRS Form 1023-EZ (projected revenue < $50K/yr) or Form 1023 (full)
- 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 |