Starting a Business

How can I turn a for-profit business into a nonprofit business?

min read
Opinions expressed by Entrepreneur contributors are their own.
It can be very thorny to convert a for-profit to a not-for-profit corporation. First of all, in most states, the companies are qualitatively different and have different formation requirements.

Second, you will likely run into tax issues with the transfer of assets from the for-profit to the not-for-profit company.

Third, the governance and operation of the not-for-profit is different from running a for-profit enterprise.

Before you think about making this change, realistically evaluate the likelihood that government sources of income will flow your way--and soon. Otherwise, you could find yourself in deeper trouble for mismanaging a nonprofit.

Make sure you consult with an attorney and an accountant who are well-versed in non-profit issues.

More from Entrepreneur

Elizabeth's expertise can help you scale your business, build a personal brand and focus on being a value-driven CEO.
Book Your Session

For a limited time only, get this bundle of Entrepreneur PressĀ® titles for less than $30 (60% OFF) on our bookstore when you use "LEAP" at checkout.
Buy Now

Are paying too much for business insurance? Do you have critical gaps in your coverage? Trust Entrepreneur to help you find out.
Get Your Quote Now

Latest on Entrepreneur

My Queue

There are no Videos in your queue.

Click on the Add to next to any video to save to your queue.

There are no Articles in your queue.

Click on the Add to next to any article to save to your queue.

There are no Podcasts in your queue.

Click on the Add to next to any podcast episode to save to your queue.

You're not following any authors.

Click the Follow button on any author page to keep up with the latest content from your favorite authors.