Response
One of the merits of the not for profit corporation concerns tax exemptions. The not for profit can offer their services without slicing any amounts to the government. The services reach the people as a public good. On the contrary, for profit corporation has a disadvantage of tax exemptions unlike the not for profit (Bolton & Mehran, 2006). Therefore, for profit must settle their taxes as needed by the law. The second advantage is that the not for profit depends on volunteer staff while for-profit corporations comprise paid interns and employees. Not much financial constraint is placed on the not for profit for settling staff-related expenses compared to for profit who have to settle such operational costs.
“ Discuss the Differences between A Limited Liability Company and A "For Profit" Corporation.”
Response
The first difference is that the LLC comprises members while for-profit corporations are made up of a given number of shareholders. The LLC may have an unlimited number of members, while for profit could have unlimited shareholders. The second difference is that the LLC may select either a manager-manager business model or a member-manager structure. The Manager-manager business model is comprised of managers only who oversee every business activity. Member-manager structure comprises LLC members who play a central role in every business activity. On the other hand, for profit corporations has a detailed business structure comprised of corporate employees, officers, and board members. The third difference is that LLC does not issue any forms of stocks, while for profit corporations can issue all types of stocks (Brealey, 2001). For profit corporation helps provide activities-based funding. Hence, capital is easier to collect in for profit corporation compared to an LLC.
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References
Bolton, P., & Mehran, H. (2006). An introduction to the governance and taxation of not-for-profit organizations. Journal of Accounting and Economics , 41 (3), 293-305.
Brealey, R. A. (2001). Fundamentals of corporate finance . McGraw Hill.
