Nonprofit corporation

For broader coverage of this topic, seeNonprofit organization.

Anonprofit corporationis anylegal entitywhich has beenincorporatedunder the law of its jurisdiction for purposes other than making profits for its owners or shareholders. Depending on the laws of the jurisdiction, a nonprofit corporation may seek official recognition as such, and may be taxed differently from for-profit corporations, and treated differently in other ways.

Public-benefit nonprofit corporations

Apublic-benefit nonprofit corporationis a type ofnonprofitcorporationchartered by astate government,and organized primarily or exclusively forsocial,educational,recreationalorcharitablepurposes by like-minded citizens. Public-benefit nonprofit corporations are distinct in the law frommutual-benefit nonprofit corporationsin that they are organized for the generalpublic benefit,rather than for the interest of its members. They are also distinct in the law from religious corporations.

Religious corporation

Areligious corporationis a nonprofit corporation organized to promotereligiouspurposes.

Often these types of corporations are recognized under the law on a subnational level, for instance by astateorprovincegovernment. The government agency responsible for regulating such corporations is usually the official holder of records, for instance a stateSecretary of State.Religious corporations are formed like all other nonprofit corporations by filing articles of incorporation with the state. Religious corporation articles need to have the standard tax exempt language the IRS requires.

Religious corporations are subject to less rigorous state and federal filing and reporting requirements than many other tax-exempt organizations, such asmutual benefit nonprofit corporations,orpublic benefit nonprofit corporations.Depending on the state in which they are located, they may also be exempt from some of the inspections or regulations governing non-religious groups performing the same services.

Corporation sole

Religious corporations are permitted to designate a person to act in the capacity ofcorporation sole.

Mutual-benefit nonprofit corporations

Amutual-benefit nonprofit corporationor membership corporation, in the United States, is a type ofnonprofitcorporationchartered by astategovernmentthat exists to serve its members in ways other than obtaining and distributing profits to them. Therefore, it cannot obtainIRS501(c)(3)non-profit status as acharitable organization.

A mutual-benefit corporation can be non-profit or not-for-profit, but it still must pay regular corporate tax rates. A mutual benefit corporation will pay the same taxes as a regular for-profit corporation, with C corporation tax rates. Mutual benefit corporations must still file tax returns and pay income tax because they are not formed for a purpose from which anyone in the world could benefit. Mutual benefit corporations are formed for nonprofit purposes like managing a condo association, a downtown business district, or a homeowners' association.

Autility cooperativeis an example of an MBNC.

See also

• Civic society

External links

• Organization of California Nonprofit, No Stockman Corporations