You’re out to make a difference, not a profit. Operating as a nonprofit helps your business fulfill its mission, positioning you for tax exemptions and enhancing funding opportunities. CT will get you started on the right foot.
Nonprofit corporations are created to serve a public purpose, not to make money. As a result, they receive special treatment under the law and may qualify for tax-exempt status. While they can turn a profit, that cannot be their primary goal, and no portion of it can benefit their members.
A Registered Agent and state annual reports are required for good standing. You must request tax exemption from the IRS, file federal annual reports, and prohibit certain activities to retain it. There may also be taxes from unrelated businesses. Consult your accountant and attorney to ensure you follow all requirements.
