Why use a non-profit business structure in the U.S?
Non-Profits In The U.S are popular for many reasons. Let’s discuss this in depth:
There are many benefits that can come from starting up a non profit organisation. Non-profits are in the millions here in the U.S and this article will go through some of the many advantages of using this type of business structure. The motives for starting one of these businesses will vary but TRUiC can give you a full overview of everything you need to know to help you decide if starting a non-profit organisation will interest you. https://howtostartanllc.com/form-a-nonprofit
Benefits Of Using A Non-Profit Structure In The U.S
You Can Help People Who Are In Need
This type of business is formed to help people on a daily basis. The services that this type of company offers are unlimited and have the potential to benefit the public hugely. The nature of a non-profit organisation arguably is designed in such a fashion that will contribute to helping some of the most needy people in our society. If you have a charitable heart or maybe just feel passionate about a certain cause, Starting up a non-profit organisation might be ideal.
Non-profit organizations are exempted from being taxed as an arrangement with the Internal Revenue Services. What this means is that all the money that flows into this business is not taxed because the business also offers services to the public. Your business will be tax exempted once you fulfill all the IRS requirements. In July of 2015. A record of more than 1.5 million non-profits registered with the IRS as tax-exempt. Many others, such as houses of worship and public schools don’t show up on the IRS master list because they aren’t required to apply to the IRS for exemption.
Eligibility For Public And Private Grants
Many foundations and government agencies limit their grants to public charities. Nonprofit organizations also can offer tax deductions to individuals or businesses that give charitable contributions. This allows the LLC Company to source funds from government businesses and the public. This helps the business to operate and expand its services as compared to relying on the fundraiser money.
A nonprofit organization exists as a legal entity in its own right and separately from its founder(s). Incorporation puts the nonprofit’s mission and structure above the personal interests of individuals associated with it. It can sue and be sued on its own as compared to an informal business where the party entering into the contract is liable for any breach of contract. In addition to that, nonprofit companies can enter into their contracts.
LLC Companies Offer Limited Liability Protection
Non-profit organizations protect their directors and other stakeholders from being held responsible for the debts and liabilities that the company owns. This is different from the profit making organizations in which they hold the directors and the management responsible for the debts and liabilities of the company.
Non-Profits Play An Essential Role In The U.S. Economy
Starting one of these businesses can also have a positive impact on the U.S economy. Between 2000 and 2010, the non-profit sector grew faster than either the government or business sectors in terms of the number of people employed and wages paid. Over the past few years, non-profits have accounted for 5 percent of the gross domestic product (GDP). This is a huge amount and I suspect a surprising statistic to most of you out there.
Are you surprised with all the benefits that can potentially come from starting a non-profit? Many people are not familiar with the ways that these companies are permitted to legally operate and some business models that you might have or might wish to start could fit perfectly into that of this business structure. Check out the link from earlier in the article to find out so much more about non-profit organisations!