Some of the benefits of a nonprofit business are that nonprofits can qualify under the 501(c) federal corporate income tax exemption and be exempt from state and local tax laws, an increased chance of investments to a nonprofit, as individuals are more willing to donate to organizations that will help reduce their tax liability, and the individual founders are completely separated from the nonprofit, protecting them from debts, lawsuits, fines, and other legal matters. Some of the disadvantages are that when businesses try to take off the ground, they need to raise capital from investors and attract talent with competitive wages, the public is often reluctant to give nonprofits the same leeway as for-profits, and nonprofits face costly administrative tasks, like applying for federal tax exemptions and public reporting requirements.