How to Establish a Nonprofit Corporation

It is important to define a nonprofit corporation before looking at the fact that how it can be established. It is a kind of an organization, who does not exist to earn profits; rather its purpose of existence is something else other than making profits. A nonprofit corporation works for a specific cause, where their efforts are benefit public at large. However, it is important to mention here that Nonprofit Corporation can make profits, but those profits will be invested in the organization to pay its various expenses. The nonprofit corporation can be established by following certain legal rules and procedures, because such corporations are exempted from paying any tax or liabilities. The important factor to keep in mind is that a nonprofit corporation has to get incorporation from the government relevant authorities. So, to establish a nonprofit corporation, develop a proper plan and then necessary permits and licenses should be obtained along with following any other legal procedures like filing for the tax exemption status (Candid, 2019)

 It is important to know that what pros and cons are linked with a nonprofit corporation. The biggest advantage of incorporating such corporation is that corporation has to pay no taxes at all. The corporation gets a tax exemption status from state and local authorities. Moreover, private and public donations are also exempted from any taxes. The other major benefit of nonprofit corporation is that corporation members have no personal liability to pay. The nonprofit corporation can ask for donations from any platforms, and they will have to return back nothing to anyone. But establishing a nonprofit corporation is not a simple task to do. It is a complex task with so much paper work as well as expenses. For example, to file for nonprofit status, the corporation will have to hire a professional lawyer, who can handle all legal matters of incorporation (FRITZ, 2018)

References of How to Establish a Nonprofit Corporation

Candid. (2019). How do I start a nonprofit organization? Retrieved April 4, 2019, from https://grantspace.org/resources/knowledge-base/starting-a-nonprofit/

FRITZ, J. (2018). Pros and Cons of Nonprofit Incorporation. Retrieved April 4, 2019, from https://www.thebalancesmb.com/the-pros-and-cons-of-nonprofit-incorporation-2502270