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DonnaB1 (Missouri)
Posts: 17
Posted:
Can someone tell me the differants between a LLC or a Non profit?
Thank you
DonnaB
JM2 (Oregon)
Posts: 439
Posted:
Hi Donna:

A lawyer could probably give you a clearer answer, but here goes:

A non-profit or not-for-profit corporation is organized under the particular state law and is subject to taxation as a non-profit corporation by the IRS, and may have different state tax rates than an LLC, depending on the state.

An LLC is a for-profit corporation that has limited liability, and is taxed as a for-profit corporation by the IRS under different rules and rates, as well as possibly by the state as well. Generally, an LLC is a corporate form to protect a person (or persons) doing business from certain types of debt; it provides a different level of protection than a sole proprietorship would, to keep the corporate assets/debts separate from personal assets/debts.

JPM
DonnaB1 (Missouri)
Posts: 17
Posted:
JMP, Thank you so much--you made it very clear
DonnaB
GloriaM (North Carolina)
Posts: 829
Posted:
Donna:

I just wanted to add that a non-profit and a Not-for Profit are also different in how the corporation is set up. An HOA is more than likely set up as a not-for-profit. As so many HOA's do have a surplus and they place that surplus into a reserve account, that reserve account is utilized back into the HOA, so their profit goes back into the community.

A non-profit is usually a organization like Good-Will that is tax exempt. I hope that helps.

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