Disadvantages of forming a nonprofit corporation?
The main disadvantage of forming a nonprofit company is the increased paperwork that is required. Articles of incorporation must be filed with the state, bylaws prepared and meeting minutes must be kept with your corporation s records. BizFilings can help by preparing and filing your incorporation papers and our nonprofit kit does contain sample bylaws and meeting minutes. Also, applications for tax-exempt status must be filed at both the federal and state levels. It is important to remember that nonprofits cannot be used to generate profits for the owners, and the purpose must conform to IRS regulations.
