What is Nonprofit Corporation? Definition, requirements, and how it applies to your business formation. Learn everything about nonprofit corporation for LLCs and corporations.
# Nonprofit Corporation
A nonprofit corporation is a legal entity organized for purposes other than generating profit for owners or shareholders. Nonprofits can apply for federal tax-exempt status under Section 501(c)(3) of the Internal Revenue Code, making donations to the organization tax-deductible for donors.
Forming a nonprofit requires specific language in the Articles of Incorporation (statement of purpose, dissolution clause, prohibition on private inurement) and a separate IRS application (Form 1023 or 1023-EZ) for tax-exempt recognition.
Lovie's nonprofit formation package includes state incorporation with required exempt-organization language, plus guidance on the Form 1023 application process.