I'm working on a project which will either be set up as a benefit corporation or a nonprofit. I believe both models might have the potential to work, and I'm investigating which structure makes the most sense.
To better understand the benefits/ramifications of the decision, I'd like to have a short conversation with a few of the following:
- A founder of a benefit corporation (for clarity, I specifically mean a legal benefit corporation entity as opposed to a certified b-corp)
- A founder of a nonprofit (particularly a nonprofit whose income is primarily made through selling an online tool or service as opposed through donation/grants)
- An expert (lawyer, accountant, etc.) that specializes in benefit corporations
- An expert (lawyer, accountant, etc.) that specializes in nonprofits
I am looking to keep the conversations short with questions specific to my situation and am open to paying for their time.
I'd also welcome good resources on the topic - articles, books, etc.
Any recommendations would be appreciated, and thank you!
Photo on link preview by Clark Tibbs on Unsplash
Thanks, Jason. Jurisdiction would likely be Massachusetts USA, but potentially Delaware USA.
The main purpose is to understand the financial/legal ramifications of each structure. For example, I know nonprofits can sell services but I'd like to better understand how it works from a paperwork perspective. Similarly, I'm interested in better understanding what overhead would be involved in both options - what exactly would need to be reported and how often, etc. Some of this I'm in the process of answering myself via online articles, but I'd like to talk with someone who has first-hand experience to ask more nuanced questions and confirm my understanding based on my initial research.