What is a nonprofit corporation ?

A Nonprofit corporation is one that is formed not for financial gain. It is formed to carry out the goals of the organization. The process to form a "for profit" versus "nonprofit" corporation is similar but the text of the Articles of Incorporation is different. There are no owners in a nonprofit corporation. A nonprofit corporation is controlled by a board of directors. The profits of a nonprofit corporation may not be paid to the creators of the nonprofit entity, except that the creators may receive compensation for the fair market value of actual services provided to the nonprofit. Generally, a nonprofit corporation is exempt from federal income tax, except with respect to "unrelated" business income.