Profit Corporations vs. Non-profit Corporations An profit organization earns revenue through its operations and has a self-serving agenda. Conversely, a non-profit organization benefits the public and revenue earned cannot be utilized for the betterment of an individual. The aforementioned businesses vary in type and mission. The startups of both types of organizations are similar, although their regulations are governed differently. In an attempt to increase the knowledge about each type a thorough examination will be conducted. There are many different types of profit organizations. They can be a sole proprietorship, general partnership, corporation, s-corporation, and Limited Liability Company (LLC). A sole proprietorship is when one person owns a business for profit. They are responsible for all the responsibility for all liabilities and debts of the business. A general partnership is when two or more people are co-owners of a profit business. A corporation assumes all liabilities and debt of the corporation owned by shareholders. An s-corporation …show more content…
Second, the company must hand out its money to a similar non-profit organization. “A nonprofit corporation is formed to carry out a public purpose, whether that be religious, educational, charitable, scientific or whatever. It is prohibited from acting in a manner that results in private inurement (profit) to individuals.” The person that started the business does not own a nonprofit. It belongs to the public, but the person/people that started it will operate the organization for the stakeholders. Nonprofit organizations cannot be sold. If they go out of business, they will have to distribute it to other nonprofit organization.