subject: Don't Look For a Job, Start a Successful Enterprise - Here Are Two Choices [print this page] In this economic climate where layoffs and business closings are continuing at a high rate, an alternative to continually looking for a job and being disappointed is to a start an enterprise. There are different models from which you can choose to start your enterprise. However, the two main corporate models are the non-profit corporation and the for-profit corporation. The term non-profit should not deter you from exploration. It might be the best way to go.
Here is a comparison taking the requirements in Illinois as an example. Other states have similar requirements. Check with your Secretary of State. To start a non-profit organization in Illinois, you need at a minimum three people to occupy significant positions. These positions are president, secretary, and treasurer. There may be more people on the board of directors, but the key is to have these three positions filled.
Afterwards, the following steps need to be completed:
a. Choose a name for the corporation
b. Develop your purpose
c. Designate a location and the designated agent
d. Submit the registration fee of $77.75
To develop a for-profit corporation the following steps need to be completed:
a. Choose a name for the corporation, address, and registered agent
b. Determine how many shares of stock to be issued
c. Make sure your corporation has a lawful purpose
d. Submit the registration fee of $281.25.
After these steps have been completed and approved, the state will then issue you a charter and you can then begin operating. Depending upon whatever business model you choose, both are considered to be legal entities. And as such, you will find both non-profit and for-profit organizations selling clothing, books, food, real estate, furniture and various other items. The only difference is that the income from the non-profit organization can only be for expenses associated with the organization and its purpose, including salaries, rent, equipment, etc. and for for-profit organizations, the purpose is to make a profit and that profit is then taxed.
Don't Look For a Job, Start a Successful Enterprise - Here Are Two Choices
