For Profit vs. Non-Profit

A non-profit corporation is formed to respond to the need in the area of human social services or some other need in the world. It is a legal entity that acts as a separate individual like a “for profit” corporation, but its primary motivator is service, rather than profit.  Excess revenues are used to advance the purpose of the corporation. Officers and employees are not permitted salaries higher than the “reasonable” rate. A non-profit incurs considerably more scrutiny form the public and is required to have a board of directors that monitor the activities. Non-profits are eligible for tax-exempt status. A non-profit belongs to the public, so if it is dissolved, all assets must be given to another non-profit with a similar mission. Incorrect use of assets is considered misappropriation, and this is punishable by law. For help with questions about incorporating a small business or a non-profit incorporation, please contact us.