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The main difference is the cost associated with it. In order to be an non-profit organization you need an founding meeting, board elections and all of it have
by Stranger43 5y ago
The main difference is the cost associated with it.
In order to be an non-profit organization you need an founding meeting, board elections and all of it have to be notarized and drawn up by an attorney before being validated by the state an process that takes weeks if not months where as anyone can set up an company online in about 15 minutes.
For some European nations the processes are far more similar and as code civil courts can do their own fact finding you don't need to pay an notary to validate everything or have an attorney draw up a whole bunch of documentation just to found an small non-profit association.
- rswail 5y agoIn Australia, setting up an association of members is as easy as a limited liability company. You can become a Federally registered not-for-profit as an incorporated association. The cost of having a model set of a constitution and doing the paperwork is as simple as doing the same for a limited liability private company.
- jesboat 5y agoIt varies from state to state, but in the states I'm aware of (at least 3) it's not nearly as hard as you're making it sound. An attorney is not required and, while the non-profit status may take some time to approve, the existence of the corporation itself generally is essentially the same as founding a for-profit corporation. In particular, attorneys are not required, and it is generally pretty easy to get things notarized for free (most banks have notaries on staff and I've never had one charge me.) I know multiple people who have set up non-profits on their own, without any lawyers, and have not had any difficulties throughout the process.