Published on May 24, 2018
Do you have as a goal addressing a societal problem? Or maybe forming a social club, trade organization, or cooperative? If so you may be wondering if you should operate informally or if your goals could best be accomplished by incorporating.
If you are looking to earn a profit as well as accomplish those other goals, then you would want to form a for-profit corporation or LLC. But if you are not looking for profit then you should consider the benefits of forming a non-profit company.
Most nonprofits are formed to provide a benefit to the public, as opposed to clubs, cooperatives, etc. that are formed to benefit their members. They include companies formed for charitable, educational, scientific, religious and literary purposes. These charitable companies are also referred to as Sec. 501(c)(3) organizations, after the section of the Internal Revenue Code that provides them with an exemption from taxation.
Below are some of the benefits of a forming a statutory nonprofit company (usually a corporation although an LLC can be a nonprofit as well), rather than continuing to pursue a nonprofit purpose as an informal group or association.
If you have questions or would like assistance with forming a nonprofit company, call our customer service team between 8 am and 7 pm CST, at 855-335-8519.