Big Nerd Idea, LLC¶
bignerdidea.com · For-profit LLC
Big Nerd Idea, LLC is the commercial execution arm of the BNI ecosystem. It delivers Services, Apps, and Smart Device products built on open-source software and hardware frameworks published by BNI Foundation, and sponsors the Foundation's continued development through an annual donation agreement.
Description¶
BNI LLC generates revenue by taking the Foundation's open ecosystem to market:
- Services — managed hosting, enterprise support contracts, consulting, and SLA agreements for organizations running BNI open-source software
- Apps — white-label and custom-branded versions of MPowerUP, RlivN, and other BNI platforms for partner organizations
- Smart Devices — IoT and smart home device products built on BNI Foundation hardware frameworks, sold in partnership with device manufacturers
- Hardware partnerships — revenue-sharing and integration agreements with device manufacturers who build on BNI open specs
The commercial success of BNI LLC directly funds the Foundation's open-source mission through a voluntary annual sponsorship donation.
Legal Structure¶
| Field | Detail |
|---|---|
| Entity type | Single-member LLC |
| Owner | Kevin Crump |
| Website | bignerdidea.com |
| Recommended filing state | Home state (simpler and cheaper to maintain than Delaware/Wyoming for a small single-member LLC) |
| Tax treatment | Pass-through by default (Schedule C / sole proprietorship treatment unless S-Corp election made) |
Formation checklist¶
- [ ] File Articles of Organization with home state (~$50–150 filing fee)
- [ ] Obtain EIN from IRS — free, online at irs.gov, takes 10 minutes
- [ ] Open a business checking account in BNI LLC name using EIN
- [ ] Update any existing contracts or billing to use LLC name + EIN
- [ ] Draft and execute sponsorship agreement with BNI Foundation
Community property states
In Arizona, California, Idaho, Louisiana, Nevada, New Mexico, Texas, Washington, and Wisconsin, an LLC owned by a married person may be treated as a two-member LLC for federal tax purposes even if only one spouse is listed as owner. Confirm with a CPA before filing.
Governance¶
LLCs are not required to have a board of directors. BNI LLC is managed by Kevin Crump as the sole member-manager.
Advisory board (optional)¶
An informal advisory board can be formed at any time with no legal requirements. Advisors have no fiduciary duty and no voting power — they provide guidance only. Useful for bringing in domain experts (hardware manufacturing, healthcare, social services) without the governance overhead of a formal board seat.
Spouse and family members¶
A spouse or family member can hold any role in BNI LLC without restriction:
| Role | Permissible? | Notes |
|---|---|---|
| Co-owner / member | ✓ Yes | Creates a two-member LLC; affects tax filing |
| Officer (CFO, COO, Secretary, etc.) | ✓ Yes | No restrictions |
| Employee | ✓ Yes | Must pay reasonable market-rate compensation |
| Advisory board | ✓ Yes | No restrictions |
Revenue Streams¶
| Source | Description |
|---|---|
| Enterprise contracts | Support SLAs, custom deployments of BNI Foundation open source |
| Managed hosting | Run BNI software for organizations that can't self-host |
| Consulting | Architecture, implementation, training on BNI frameworks |
| White-label apps | Custom-branded versions of MPowerUP, RlivN, and other BNI platforms for partner orgs |
| Smart device products | IoT and smart home devices built on BNI Foundation hardware frameworks |
| Hardware partnerships | Revenue-sharing and integration agreements with device manufacturers |
Relationship to BNI Foundation¶
BNI LLC is the primary sponsor of BNI Foundation. The relationship is governed by a written sponsorship agreement between the two entities specifying:
- Donation amount or percentage (~15–20% of annual revenue is the target, though no percentage is legally mandated)
- Payment timing (annual year-end payment or quarterly installments)
- Arm's-length terms — the donation must be a genuine gift with no quid pro quo benefit back to BNI LLC
Why the percentage is voluntary
The IRS does not mandate any specific sponsorship amount. The 15–20% target exists to ensure BNI Foundation has meaningful independent revenue and is not solely dependent on BNI LLC — a dependency that could raise private benefit concerns during the 501(c)(3) application or audit. The actual percentage can be adjusted as revenue scales.
The Foundation publishes open-source software and hardware frameworks under open licenses. BNI LLC may use those outputs freely — this is the value flowing the other direction.