Here are some frequently asked questions about non-profit corporations. If you need additional info, please contact us via telephone toll-free, online chat, email, or fax.
A non-profit corporation is a special form of corporation designated by federal law (21 US Code 501(c)(3)). Being non-profit can give you certain tax benefits. For example, most non-profits don't pay taxes. In addition, most donations to non-profits are tax-deductible, which can make it a lot easier to raise funds. (Note: being non-profit doesn't automatically give you tax exempt status. We can help you achieve tax-exempt status when you incorporate a non-profit with us.)
Typically a church, temple, or other group that operates with a religious basis.
Public Benefit Corporation
An organization formed for broad charitable purposes, such as homeless shelters, youth centers, youth sports programs, art groups, or care for the elderly. Public Benefit Corporations sometimes get funding from public sources such as the government.
The focus of a Public Benefit Corporation is, not surprisingly, the public benefit. If you want to form an organization to benefit only a select group of people, then you might not want to form a Public Benefit Corporation. If, on the other hand, you intend to make your services available to an entire section of society (such as homeless people, teens, or the elderly) then you should consider forming as a Public Benefit Corporation.
Mutual Benefit Corporation
If you intend your organization to only benefit a select group of people, then you should consider forming a Mutual Benefit Corporation instead. These organizations often run on a "membership" model, and are intended to serve members only. Examples include fraternities, homeowner's associations, and service organizations such as the Lions Club.
