For-Profit and NonProfit Organizations

What is Nonprofit Organization?

Nonprofit Organizations

A nonprofit organization exists to provide a particular service to the community. The word "nonprofit" refers to a type of business -- one which is organized under rules that forbid the distribution of profits to owners. "Profit" in this context is a relatively technical accounting term, related to but not identical with the notion of a surplus of revenues over expenditures.
How do you start a 501 (3) Nonprofit Organization? Allow IEG to assist you from beginning to end with the following:

Choose an available business name that meets the requirements of state law
- The name of your nonprofit cannot be the same as the name of another corporation on file with the corporations division.
- The name must end with a corporate designator, such as Corporation, Incorporated, Limited Liability Company, or Corp., Inc., or LLC. (This is required in only about half of the states.)
- The name cannot contain certain words prohibited by the state, such as Bank, Cooperative, Federal, National, United States, or Reserve.
File formal paperwork, usually called articles of incorporation, and pay a small filing fee (typically under $100).
Apply for your federal and state tax exemptions.
Create corporate bylaws, which set out the operating rules for your nonprofit corporation.
Appoint the initial directors. (In some states you must choose your initial directors before you file your articles, because you must list their names in the document.)
Hold the first meeting of the board of directors.
Obtain licenses and permits that may be required for your corporation.

What is For-profit Organization?

For-Profit Organizations

For-Profit Organizations A for-profit organization exists primarily to generate a profit, that is, to take in more money than it spends. The owners can decide to keep all the profit themselves, or they can spend some or all of it on the business itself. Or, they may decide to share some of it with employees through the use of various types of compensation plans, e.g., employee profit sharing.

How do you start a For-profit Organization?

Allow IEG to assist you from beginning to end with the following:

1. Defining the Role of Treasurer and other Organization Officers
2. Locating a Facility
3. Hiring an Accountant or Bookkeeper
4. Buying Accounting Software
5. Choosing a Banker
6. Preparing and Managing a Budget
7. Managing Cash Flow
8. Financial Statements
9. Profit and Loss Statement (Income Statement)
10. Writing Articles of Incorporation or LLC Articles of Organization
11. Obtaining an Online Presence for your Organization

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