What are the differences between for profit and nonprofit corporations?
Profit corporations are authorized to issue shares of stock to shareholders in return for capital investments. Shareholders receive a return on their investments when dividends are paid or when assets are distributed after dissolution. Nonprofit corporations neither issue shares nor pay dividends, and when it dissolves, the remaining assets must be distributed to another tax-exempt nonprofit group.
Profit corporations are authorized to issue shares of stock to shareholders in return for capital investments. Shareholders receive a return on their investments when dividends are paid or when assets are distributed after dissolution. Nonprofit corporations neither issue shares nor pay dividends, no part of the income may be distributed to its members, directors, or officers.
