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Top Benefits of Forming a Nonprofit Company
Published on Jan 26, 2012
Read 'Top Benefits of Forming a Nonprofit Company' at 'Time to Start Up,' the small business blog by BizFilings.
Thinking about forming a nonprofit company?
You probably already know that they’re specifically formed for purposes other than operating a profit-seeking business. But you might not be aware of all the benefits associated with being a nonprofit organization.To follow are the top advantages of forming a nonprofit company. We hope they help you gain a clearer picture of what these types of business formations have to offer …
Top Seven Benefits of Forming a Nonprofit Company
Limited liability protection. Protects directors, officers and members against being held personally responsible for their company’s debts and liabilities. With limited liability protection, creditors cannot pursue the personal assets of the business owner to pay off business debts.
Tax-exempt status. Nonprofits can apply for both federal and state tax-exempt status.
Access to grants. Some nonprofits are eligible to receive public and private grants, making it easier to get operating capital. For instance, certain grants and other public allocations are only available to 501(c)(3) organizations.
Tax-deductible donations. With 501(c)(3) nonprofits, donations made by individuals to the nonprofit corporation are tax-deductible.
Possible state sales and property taxes exemption. This benefit varies by state.
US Postal Service discounts. Tax-exempt nonprofits generally can receive discounts on bulk mail rates.
Credibility. There is established credibility for an organization that is recognized by the IRS as a tax-exempt nonprofit.
We’re Here to Help
If you have questions, or would like assistance with forming a nonprofit company, feel free to give our customer service team a call between 8am and 7pm CST, at 800-981-7183. Or, send us an e-mail anytime. We’re always happy to help.blog