Starting a Non-Profit Corporation
The difference between a for-profit corporation and a non-profit corporation is that while a for-profit corporation attempts to use any after-tax profits to pay dividends to its stockholders, a non-profit corporation uses its profits to further its charitable goals. Examples of famous for-profit corporations include Microsoft, Coca-Cola, and Nike, while famous non-profits include the American Red Cross, Catholic Charities, and PETA.
Forming a non-profit corporation is just as big a step as forming a for-profit corporation, and to do so you'll need to know the ins and outs of what it takes to get a non-profit off the ground.
Forming a Non-Profit
Forming a non-profit corporation is actually pretty similar to forming a for-profit, albeit with the extra requirement of filing for tax-exemption status. Under US law, non-profit corporations are allowed tax-exemption status because of their charitable work. After you've filed for a name for your company, you need to file articles of incorporation to have your business granted tax-exempt 501(c) status. It can help to have a business attorney assist with filing the paperwork.
By-Laws
Like all corporations, non-profits need to have by-laws governing the running of the company. You will need to file for any additional licenses and permits that may be a requirement for the operation of your business. You will also need to appoint a board of directors to run the company.
Contact Us
If you're attempting to start a non-profit corporation and have questions, contact Texas Legal Entities by calling 512-472-2431.
At any time, please feel free to ask us a question. It's FREE!