If you are considering forming a company that acts as a charitable organization, serves to promote the public arts, or acts as a trade union, then you are actually looking to form what is known as a "non-profit." Non-profit businesses, in general, work to promote the good of the general public. Some examples of non-profit corporations include the American Red Cross, the American Civil Liberties Union, and religious organizations like churches.

Non-profit employees, in general, are not working for their companies in order to get rich. They do so because they believe in the cause and improving the way it benefits society. Overall, non-profit companies have a lot to offer. They provide support to those who otherwise would have great difficulty obtaining the help they need.

Non-profits may become corporations. In fact, the majority of these organizations do choose to incorporate because there are a number of benefits to be gained by doing so:

Granted permission to have its own property Granted permission to have its own bank account Organization becomes free-standing Protect the owners from liability Non-profit organizations can file for tax exemption. If they meet certain standards that have been established by the Internal Revenue Service (IRS), then they will be granted a tax-exempt status and will be considered free from paying federal income taxes.

Forming a Non-Profit Corporation

There are certain steps all non-profit founders must take in order to successfully form their operations. In order to successfully form a legally-recognized non-profit corporation, you must take all of the following steps:

Select an available name that will be approved by the state filing office File the articles of incorporation and pay the associated fee Select your board members and directors Hold the first meeting with the board to determine where you will incorporate the non-profit and to draft the bylaws File for tax exemption, if you so desire Make sure you have all of the necessary and required licenses and permits Open a bank account for the company Once these steps have been successfully carried out, then you will have a legally-functioning non-profit corporation.

Contact Us

Sometimes, those collaborating to form a non-profit will disagree over company ideals, basic ground-rules, or how they believe the corporation should be run. In these situations, the help of an experienced business attorney can be invaluable. If you are currently engaged in a business dispute over your non-profit organization, then Ellen Rothstein, Manhattan business lawyer, can help you come to a resolution. Contact her today by visiting http://www.erothsteinlaw.com/.