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Not-for-profit Corporation is
a company specifically formed for purposes other than
operating a profit seeking business, such as a
charitable, religious, education, or scientific purpose.
There is, however, a mistaken belief that all
"non-profits" cannot make money. It can,
either from its own charitable activities or from ways
unrelated to the non-profit purposes.
For purposes of incorporating, setting up a non-profit
is similar to setting up a regular for-profit
corporation and would enjoy some of the same common
features (e.g., separate legal entity and limited
liability protection). The not-for-profit corporation is
distinctive in two ways: (1) the corporation cannot be
organized for any person’s private gain, and (2)
should it dissolve its assets, the corporation must
distribute to a similar tax-exempt nonprofit group.
The mere fact that a corporation is organized as a
not-for-profit corporation that does NOT mean that
contributions to it are necessarily tax deductible. For
donations to be "tax
deductible" the charity must file an
"Application for Recognition of Exemption"
with the Internal Revenue Service and be approved
pursuant to Internal Revenue Code Sec. 501(c)(3).
NOTE: On your corporation/limited liability
company setup screen, you will be asked if you would
like to take advantage of our our Deluxe
Services. Click on one of the following
links to find out about our Deluxe
Incorporation Service and our Deluxe LLC
Service.
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