A Nonprofit Corporation has most of the powers of a corporation without the expense of income taxation. It must include special IRS language in its Articles of Incorporation in order to qualify for nonprofit status. Is generally exempt from income taxation. Must be designated as either a public benefit, mutual benefit, or religious corporation. If it is a public benefit or religious type then it must distribute its assets to other nonprofit corporations, charitable institutions, or to the federal, state, or local governments, for a public purpose, upon dissolution.
Additional regulations apply for private foundations.
At least one half of the officers and directors must be individuals licensed to perform the service of the corporation. Shareholders may only be persons who are licensed to render the specific professional service. Must file its Articles of Incorporation with the appropriate professional licensing entity. Limited Liability Companies are low maintenance organizations. They are not required to hold annual meetings but must file annual reports.