September 26, 2019
What about non-profit juridical forms?
Can also be used in business, but there are differences compared to a regular company.
Requires at least 2 board members. Will go through automatic liquidation if less. Money can only be used towards the goal set in its charter. By definition, they can’t make a profit, that means you can’t take out the profit as dividends, a non-profit can only pay a salary to its employees.
But the advantages are the following, no equity.
There is no equity to claim against 🙂 if the members of the board have not shown a significant degree of negligence in the management of the non-profit organization.