Understanding The Benefits Of A Non-profit Corporation Through Business Lawyers In Camp Hill
By choosing to establish a non-profit organization, the prospective owner has identified the need within their community for this organization. He or she has determined which legal structure most effectively describes their intentions for the company. To determine which permits are required for starting this business, the potential owner should consult with Serratelli Schiffman & Brown P.C.
Benefits of a Nonprofit Corporation
Individuals who choose to start a nonprofit corporation acquire limited liability protection. This frees any board members from any debt-based liabilities associated with the company. They further decrease complications with the IRS; this agency handles the tax implications of corporations designed for non-profit purposes more often than other business structures. It is more simplistic for these agents to enforce compliance as well as allowing the owner to understand these requirements easily.
State tax exemptions are assigned to these business types more often. Charities established through this business form are more recognized by the community and have more credibility when this option is chosen. It is easier to assign board members for the charity and to understand their necessary roles based on government compliance as a corporation than other business structures.
In terms of board members, any shareholders of the charity elect the board members. This board controls the nonprofit company and therefore, distributes the funds to the chosen recipients. For instance, if the company is established to help the homeless in a given community, it is formed as a public-benefit corporation. The board would distribute the funds to shelters in the community. These public entities may additionally give to volunteer services such as fire departments.
A medical professional who wishes to establish a clinic operated through a non-profit organization could establish a corporation which would provide these services to the public. Several forms of professional services are offered through these non-profit structures. They are tax-exempt based on Pennsylvania laws governing these business types, in most cases. Business Lawyers Camp Hill may further explain any liabilities associated with taxes based on the type of professional services offered.