476:, and potentially a stock fee if the corporation changes from non-stock to stock. (Changing from non-profit to for-profit is generally not allowed absent special permission.) Generally the renewal fees on a non-stock corporation can be substantially less than a stock corporation. For example, the fee for incorporating any non-stock or incorporating a stock corporation up to a small number of shares, say 40,000 might be $ 200, but a year later, at renewal, the renewal fee for a non-stock corporation would be $ 50, while the stock corporation would have a renewal fee of $ 50 plus a stock fee of perhaps another $ 200 or so.
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Some jurisdictions impose a fee for an annual report filed by stock corporations (Maryland, for example, charges $ 300 a year), and in some states impose this fee on LLCs, but do not impose this fee on non-stock corporations. Generally, most for-profit companies are stock corporations; this thus
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In the
Philippines, a non-stock corporation may be formed or organized for charitable, religious, educational, professional, cultural, fraternal, literary, scientific, social, civic service, or similar purposes and must distribute no part of its income as dividends to its members, trustees, or
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A corporation created solely to act as nominal owner of some property might not need to have shares of stock because all of the directors or members would have been co-owners. For example, owning a safe deposit box in a corporate name: if the corporation is non-stock, the directors of the
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Someone is incorporating a business for liability protection, but is not really interested initially in being able to sell the business. A company can always switch from stock to non-stock and vice versa at any time, usually by paying a small fee to change the
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In Kansas, some provisions of the Kansas general corporation code also apply to nonstock corporations, where a nonstock corporation is defined as a "corporation organized under the Kansas general corporation code that is not authorized to issue capital stock."
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are sold) the corporation can be "wound up and dissolved" (liquidated) and the profits paid to the members or directors without deduction. But if it is a stock corporation, it may be necessary to pay taxes on the profits, then pay the benefits as
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In many jurisdictions, a nonstock corporation can elect to become a stock corporation if certain conditions are met. For example, the Cato
Institute was once a nonstock corporation under Kansas law that elected to become a stock corporation.
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entitled to share in the proceeds in the event the corporation is liquidated; this is not available if the corporation is non-profit; if a non-profit is liquidated, all the proceeds must either be donated to another surviving non-profit or
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corporation are not its owners, and thus have no personal ownership of shares of stock of the corporation, and as the safe deposit box is in a corporate name, it is not listed as belonging to the directors either.
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officers, and any profit obtained as an incident to its operations shall, whenever necessary or proper, be used for the furtherance of the purpose or purposes for which the corporation was organized.
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Title 15, Chapter 21 of the
Consolidated States of Pennsylvania provides the laws regarding Pennsylvania nonstock corporations. Existing stock corporations can elect to become nonstock corporations.
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In many jurisdictions the yearly renewal fees imposed on corporations can be higher than the initial filing fee.
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In the event of a for-profit corporation being formed for a single business purpose such as a one-shot
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registration and fees. For corporations being operated for short-term purposes, this may be adequate.
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supports the formation and existence of non-stock corporations, as well as other states.
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There are different reasons for forming a non-stock, for profit corporation.
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and reportable (and could be seized in the case of a lawsuit or a government
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633:"What is a Non-Stock Corporation? | Harvard Business Services"
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In
Delaware, nonstock corporations are provisioned for by its
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http://www.lawforchange.org/NewsBot.asp?MODE=VIEW&ID=2346
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While members of a non-stock corporation are not entitled to
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By not filing as a non-profit, it is not necessary to obtain
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Goldmark & White; Godfrey
Goldmark; Frank White (1913).
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is set up this way.) While rare, it is also possible for a
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and tools are available to assist in formatting, such as
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239:, allow nonprofits to issue stock. For example, the
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235:are non-stock corporations. (Some states, such as
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569:"Virginia SCC - Virginia Nonstock Corporations"
452:While stock in a corporation is considered an
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647:"Statute | Kansas State Legislature"
385:Learn how and when to remove this message
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108:Learn how and when to remove this message
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678:"Title 15"
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141:link rot
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