Nonprofits have a comprehensive set of benefits that accompany them, and as such, can be an attractive option for a would-be founder. However, the nonprofit business sector has a number of negatives, as well, and it is essential that they be considered along with any possible advantages.
Tax-Exempt Status
The tax-exempt status of an NPO can be one of the best aspects of this business sector, but the IRS must approve the status of a nonprofit before it becomes tax-exempt. Even for a nonprofit that has already been incorporated and approved at the state level, IRS sanction is essential.
Dealing with the Internal Revenue Service is a process that most look forward to with trepidation. Therefore, it is a good idea for any prospective NPO founder to ensure that any tax questions, concerns, or problems, including those for past taxes, are settled before entering into the process of founding an NPO. Tax laws in the
