Is a Delaware Public Benefit Corporation Different Than a Non-Profit?

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Delaware Public Benefit Corporations are different than non-profit organizations in that non-profit organizations typically operate for a charitable purpose, and therefore qualify for tax-exempt status from the IRS.

Non-profit organizations do not have shareholders, and if there is a Board of Directors, the Board cannot seek or reap any private benefits from the activity of the company.

A Delaware Public Benefit Corporation, on the other hand, is expected and encouraged to earn profits; it is also owned by its shareholders and cannot apply for tax-exempt status.

Although Delaware Public Benefit Corporations have existed for less than eight years, there is already a small but impressive roster of Delaware Public Benefit Companies, including:

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Harvard Business Services, Inc. guarantees your annual Delaware Registered Agent Fee will remain fixed at $50 per company, per year, for the life of your company.