What is a Non-Profit Corporation?

State laws distinguish between for-profit (stock) corporations and non-profit (non-stock) corporations.

A non-profit corporation often involves an organization whose primary objective is to support some issue or matter of private interest or public concern for non-commercial purposes.

Examples of non-profit types might relate to the arts, charities, education, politics, religion, research, sports or some other endeavor.

Under the Federal Tax Code Section 501(c), a tax-exempt corporation cannot pay dividends and, upon dissolution, must distribute its remaining assets to another nonprofit group.

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