Nonprofit Corporations

Nonprofit Corporations

Nonprofit Corporations

Nonprofit corporations are usually used for social clubs, churches, and charities, and are beyond the scope of this guide. While they are similar to for-profit corporations in many aspects, such as limited liability and the required formalities, there are additional state and federal requirements that must be met.

In some cases, a business can be formed as a nonprofit corporation. It would not be allowed to distribute profits to its founders, but it could pay substantial salaries and enjoy numerous tax advantages.