Entity Structure¶
BNI operates a dual-entity model. The Foundation owns and publishes the open ecosystem. The LLC executes commercial products and services built on that ecosystem, and sponsors the Foundation's continued development.
flowchart TD
BNIF["Big Nerd Idea Foundation\nbignerdidea.org\n──────────────────────────────\nNon-profit 501(c)(3) forming\nOpen-source software · Hardware frameworks\nArchitecture guidelines · Developer APIs · Docs"]
BNILLC["Big Nerd Idea, LLC\nbignerdidea.com\n──────────────────────────────\nFor-profit LLC\nServices · Apps · Smart Devices\nHardware partnerships"]
BNILLC -- "Sponsorship donation\n(voluntary, ~15–20% of revenue)" --> BNIF
BNIF -- "Open ecosystem\n(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.
Why two entities?¶
| Question | Answer |
|---|---|
| Why not just one nonprofit? | The nonprofit cannot distribute profits to founders. Commercial revenue from services and devices must flow through the LLC. |
| Why not just one for-profit? | A for-profit cannot receive tax-deductible grants or donations, and cannot credibly hold open-source IP as a public good. |
| Why not make the LLC a subsidiary of the Foundation? | That's the Mozilla model. It's stronger integration but more complex to govern. Two independent entities with a sponsorship agreement is simpler to form and operate at early stage. |
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 |
| Firmware and embedded software | MIT or Apache 2.0 | Broadest device adoption |
| Enterprise add-ons and Smart Device products | Commercial (via BNI LLC) | Funds Foundation development |
Pages in this section¶
- Big Nerd Idea, LLC — legal structure, governance, revenue model
- Big Nerd Idea Foundation — legal structure, board requirements, formation steps
- Formation Timeline — phase-by-phase plan from zero to sustainable operations