What is Non-stock Corporation?

 

Non-stock Corporation is often called Non-profit Corporation, is held by the member for no shareholders. Members and memberships are defined in the bye-laws of the corporation. Members can be divided into different types, including the member with the right to vote or without the right to vote.

The membership of some organizations is open to everyone, just join the organization and pay the annual fee timely. And the members of some organization is only a certain group, such as homeowners’ association—the people who have their own house in a specific geographic area. You can define the membership of your organization.

If you intend to register a corporation, not for profit, engages in religious, charitable, scientific, testing or public safety, literary or educational career, or in order to promote national or international amateur sports competition (but excluding any provision of premises or equipment), you can register the Non-stock Corporation and apply for IRS 501 (c) (3) approval. In the Non-stock and Non-profit Corporation, the individual income is forbidden, except the parts suit for members’ interests.

Non-stock Corporation can also be used for political association, homeowners association, political candidate campaign committee, Brotherhood organizations, trade associations, and community activities. Just add the appropriate instructions on the registration certificate of the Corporation.

 

Factors:
●The Board of Directors operates the Corporation
●The member with right to vote elect the members of the Board of Directors
●Set a self-perpetuating Board of Directors
●Define the membership in the Bye-law of the Corporation
●No shareholders, no owner

 

Generally used for:
●Charitable or religious organization
●Owners' Association
●Political Organization
●Trade Association
●Community organization