What is a Not-for-Profit Corporation?
A not-for-profit corporation is a corporation formed in NYS pursuant to the Not-for-Profit Corporation Law. Not-for-Profit Corporation Law Section 201 (Purposes) provides that a not-for-profit corporation may be formed for as a Charitable Corporation or a Non-charitable Corporation as defined in Not-for-Profit Corporation Law Section 102 (Definitions). A not-for-profit corporation may not be formed for pecuniary profit or financial gain. For details, review the Not-for-Profit Corporation page.
S corporation vs. C corporation
After you create your corporation, you can choose between filing taxes as an S corporation ("S corp") or a C corporation ("C corp"). An S corp is considered a "pass-through entity," which means the business itself isn't taxed. Instead, income is reported on your personal tax returns. A C corp's income is taxed at the corporate level, and if dividends are distributed, at the individual level as well. When a business is formed in NYS, it is automatically a c-corporation unless you have filed as an S corp.
Note: Questions and designations regarding an organizations not-for-profit status may be identified/asked throughout agency applications. For example in the WCB Certificate of Exemption (CE-200) it is listed as a reason for exemption after the business profile questions are completed. For more information, Click Here to visit the IRS website.