what are the differences between a profit business and a non-profit business?
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one makes profit (money) and the other doesn't
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Not too sure about non-profit organizations, but many of these challenges can be applied to NPO's as well. Hope this helps!\n\n1st: Making fairly sound and reasonable predictions about demand through the life of the project. \n\n2nd: Controlling variable costs through the years. The analyst has to be realistic about what VC's might increase and by approx. how much? \n\n3rd: Depreciation on plant/equipment. What method of depreciation is being used? \n\n4th: Taxes on your EBIT. Watch for this baby! I don't know the tax scenario with NPO's. Sure demands some research.\n\n5th: Salvage value of the plant/equipment. Predicting the monetary value of the plant/equipment at the end of the project to factor into your NPV, IRR and MIRR. \n\n6th: Setting a realistic rate of return. Too high and even a good project will seem like it's not good enough. Too low and your NPV and other measures might seem better than they really are.\n\nIf your project is international look out for future fluctuations in the exchange rate. Witholding tax by the foreign govt. can affect your bottom line as well.\n\nIn an age of terrorism and international migration of jobs, watch for these too. Perform sensitivity analyses on initial investment, demand, price, variable & fixed cost and salvage value to get an in-depth view of how changes in these variables affects your NPV, etc.\n\nGood luck! Looking forward to what others have to say!
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Aside from tax shelter, starting your own charity gives a business control over where their charitable donations go and how they are used. It also "humanizes" the company - projecting the image that this business has a strong social responsibility. Great for building credibility and helping other people
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For-profit companies are for 'just for profit' althought many support social issues via CSR or 'corporate social responsibility' programs.\n\nNonprofit companies are not for profit.
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no, rather than declaring a profit you increase your salary and stipends.\n\nnon-profits like the Humane Society of the United States are always giving each other raises and renovating, and have function dinners and conventions in Hawaii.\n\nYour still the boss and can have a board as well.
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The small business administration site at http://www.sba.gov has information on starting up all sorts of businesses.  Check there first.\n\nAs well, The Foundation Center has a number of free resources for starting a nonprofit organization.\n\nFrom the Foundation Center: Forming a new nonprofit is a process that involves two distinct stages. Generally, you will need to establish your organization by filing articles of incorporation with the appropriate agency in your state (usually the secretary of state). You will also need to secure federal income tax exemption by filing the appropriate forms with the Internal Revenue Service. \n\nsee whole article and list of resources, including an online tutorial about how to start a nonprofit at http://fdncenter.org/getstarted/faqs/html/starting_nonprofit.html\n\nThe IRS page with information for charities/nonprofits is here: http://www.irs.gov/charities/index.html
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Quicker Tax Preparation: As a sole proprietor, filing your taxes is generally easier than a corporation.Simply file an individual income tax return (IRS Form 1040) including your business losses and profits. Your individual and business income are considered the same and self-employed tax implications will apply.\n\n\nLower Start-up Costs: Limited capital is a reality for many startups and small businesses. The costs of setting up and operating a corporation involves higher set-up fees and special forms. It's also not uncommon for a lawyer to be involved in forming a corporation.\n\n\nEase of Money Handling: Handling money for the business is easier than other legal business structures. No payroll set-up is required to pay yourself. To make it even easier, set up a separate bank account to keep your business funds separate and avoid co-mingling personal and business activities.
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You define it.   One is big enough.   Define your corporation, it's board, it's membership requirements, the products, mission, services.   It's a free country.  \n\nYou do not need any legal thing.  Down the road, you and your board of directors will define your organization clearer, and decide what corporate structure that you need.    A simply DBA might do the trick for many years.   But if you want to attain a non-profit status, you might have to incorporate further.   \n\nJust get started and DO something.
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Mission statement and goals then a non profit license then the registration of the NPO is a start. \nFound a site for more info below. Good Luck
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I've worked for non-profits for the last 14 years and although I love my job, it does differ from for profit companies.  First of all, expect a drop in salary, especially starting with.  Non-profits are often dependent on funding from the government and when that funding is scarce, the non-profit suffers.  Additionally, there are often caps on salaries that may be imposed by the funding sources.  Benefits tend to be very good as are vacation accruals.  After that, it depends on the non-profit.  Some are run just like any other business, others feel a responsibility to the employee.  Generally, people who work in non-profits are happy with most everything except the salaries.  However, if you are good at what you do, take all the trainings available and remain enthusiastic, you can advance rather quickly and make better money.  Again, generally the jobs tend to be a little more fun and fulfill a societal need so people who work in them feel a sense of fulfillment,  I lve working in non-profits and highly recommend them if salary isn't a huge concern.  Good Luck with your research!
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I had a discussion about economies of scale about 3 hours ago.  In business, economies of scale means that in small quantities a number, i.e. profit, can be different than in large quantities.  In fact, in business, as your production increases efficiently (the term efficiently is important), your costs per unit decrease.  You take your overhead, which to a certain degree is fixed over a unit of time (usually a month or quarter is considered).  Then you take the overhead number and spread the cost over your manufactured products over that time.  When you manufacture alot, your overhead per item amount is low.  When you manufacture a few, the opposite occurs.  \n\nThis concept can be used in different disciplines and is largely universal.  Large quantities can be more efficiently produced than small quantities.
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It is actually easier to start a "regular" business because there is less government oversight on it. Since there are many financial benefits to filing as a non-profit, it is harder to get that determination and to keep it.
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A bank is a for-profit organization. Banks hold deposits, make loans, pay checks, and provide other related services for the public. They collect funds from three sources: demand, savings, and time deposits; short-term borrowings from other banks; and equity capital.\n\nA credit union is a not-for-profit financial cooperative that makes personal loans and offers other consumer banking services to individuals sharing a common bond or affiliation, such as a common employer. Because credit unions operate as not-for-profit institutions, they are exempt from both federal and local taxes. Consequently, credit unions can charge below-market rates on loans while paying higher rates to savers. A credit union gets its operating funds from shares purchased by individual owners, who are members. It also pays dividends (representing the payment of interest) out of earnings.
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1.  Tax treatment -- While both entities are pass-through on the federal level (i.e., taxed as a partnership), states tax S corps' and LLCs differently.  \n\n2.  Structure -- The advantage of an S-corp. is its easy and people are familiar with the corporate structure -- shareholders, board, management, etc.  However, S corp's can only have 1 class of stock, which limits their usefulness if you want to differentiate between types of owners.  LLCs require an operating agreement that takes some thought and care, but allow for different classes of membership interests that can have different economic and control rights -- that is why LLCs are favored for real estate partnerships or other ventures where you want to distinguish between passive and active members or want to structure a promote or carry.\n\n3.  Who can own an LLC or S-Corp.  S-corp's can't be owned by foreign persons or another company.  LLCs can.\n\n4.  Licensure issues.  Certain businesses may not be run as LLCs because LLCs can not get the required licenses.  \n\nGenerally, if you have a simple business with a couple of partners who share equally in management and ownership, S-corps are a good easy alternative.  If you have complexity in your underlying business arrangements or non-US person partners, then an LLC is a good way to go.
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Many non profits are obligated to prepare a tax document 990. They are by law obligated to give it to anyone that asks and in there you will see their sources of income.
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Non-profit organizations fulfill a need within a community or, on a larger scale, a need within a society.  Each of these organizations seeks to do business for a greater good rather than do business to make money (the fundamental principle of business is to make money).  Non-profit organizations are not trying to profit from the business that they do, they are trying to help the community or society in which they are a part.
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LLC is a for profit entity while a not for profit is well, non profit \n\nFrom Wikipedia, "a non-profit organization (often called "non-profit org" or simply "non-profit" or "not-for-profit") is an organization whose primary objective is something other than the generation of profit. Such organizations are typically funded through a mix of private or public (ie. government) donations"\n\nthe LLC is designed to give you the best of both worlds: the limited liability of a corporation while retaining a level of tax simplicity that resembles a partnership.\n\nFeatures of the LLC\n\n Limited Liability Status. The main attraction of an LLC is its limited liability status, a feature that it shares with corporations. The LLC limit your personal liability from business debts and damages incurred by the business. It basically lets you off the hook from legal liabilities such as court judgments and legal settlements obtained against the business.\n\n Tax Benefits. Like sole proprietorships, partnerships, and S corporations, the business profits and losses of an LLC are taxed at individuals' income tax rates. You will avoid a corporation's double taxation, where taxes are reported at a separate business level.\n\n Owners of the LLC. While owners of corporations are called stockholders, LLC owners are referred to as members. A member, who invests in the LLC and receive a percentage ownership interest in return, may be an individual or a separate legal entity such as a partnership or corporation. The percentage ownership is used to divide up the assets of the LLC when it is sold or liquidated, to split up profits and losses of the LLC or to divide up its voting rights. While an LLC can exist with one member, some states such as the District of Columbia and Massachusetts require LLCs to have two or more members.\n\n Flexible Management Structure. An LLC can be run either by its members or a management group elected by the members. While many small businesses are managed by their own members, an LLC can easily adopt a management-run structure in the following situations: the members decide to employ outside management help; not all of the members want to run the LLC; or an outside investor wants to be given a vote in management.\n\n Flexible Distribution of Profits and Losses. Similar to partnerships, dividing up profits among the LLC members is not restricted to the members' capital contributions. You may split up LLC profits and losses any way you wish, as long as it is provided for in the operating agreement.