What are the benefits of forming a nonprofit corporation?
Nonprofit corporations enjoy an exemption from corporate income taxes on profits from activities that are related to their organizational purpose. Also, a nonprofit is permitted to raise funds by receiving public and private grant money and donations from individuals and companies. (And the tax laws encourage people and businesses to donate money and property by allowing donors to deduct their contributions on their own tax returns.) Finally, structuring an organization as a nonprofit corporation protects its directors, officers, and members from personal liability for the corporation’s debts and liabilities.
Most importantly, nonprofit corporations enjoy an exemption from corporate income taxes on profits from activities that are related to their organizational purpose. In addition, a nonprofit is permitted to raise funds by receiving public and private grant money and donations from individuals and companies. Plus, tax laws encourage people and businesses to donate money and property by allowing donors to deduct their contributions on their own tax returns. Finally, structuring an organization as a nonprofit corporation protects its directors, officers, and members from personal liability for the corporation’s debts and liabilities, keeping their personal assets safe. Becoming a nonprofit corporation is easy with help from The Company Corporation and takes less than 10 minutes. Apply online today and start enjoying the benefits of nonprofit status. Contact us at 800-818-6082, 302-636-5440 or info@corporate.com with any questions. Return to top • Are there limitations on the activities in
