zlacker

>>modele+(OP)
There is a lot in here but turning a non-profit into a for-profit definitely should be challenged. Otherwise why wouldn't everyone start as a non-profit, develop your IP, and then switch to 'for-profit' mode once you got something that works? You don't pay income taxes and your investors get write offs.

>>silico+z11
I'm not at all clear on what a "not for profit" status even does, tax wise. In any jurisdiction.

They are still able to actually make a profit (and quite often will, because careful balancing of perfect profit and loss is almost impossible and loss is bad), and I thought those profits were still taxed because otherwise that's too obvious as a tax dodge, it's just that profit isn't their main goal?

>>ben_w+u41
Nonprofits can make profits. They aren’t taxed, but they can’t issue dividends. In theory there is some reasonable limit (in the millions) of how much they can pay out via salary compensation etc. they can’t issue dividends because they have no shareholders and no equity. Therefore the profit must simply be used towards their goal, basically.