Frequently Asked Questions (FAQ)

Coming soon: Frequently asked questions (and answers) on legal structures.

Below is a list of some of the frequently asked questions that our experts will be answering soon. Please submit any suggestions you have for additional questions below.

• What legal structures are available for social sector organizations? Are some structures more suitable for supporting organizations with a social mission?

• What impact can legal structure have on my social sector organization? Why does my legal structure matter? What aspects of my venture will be affected by my legal structure?

• What are the basics of incorporation?

• What is the most common legal structure for tax-exempt organizations? Why?

• Should I incorporate? What are the negatives to incorporating?

• What are the benefits of a partnership?

• What is the benefit of choosing a nonprofit structure? What is the benefit of a for-profit structure?

• Does a nonprofit structure have to be a "charity"?

• What structure should I use in order to later apply for exemption under 501c3?

• Does it matter in which state I incorporate? Do some states offer a more supportive legal environment for social sector organizations?

• How do I structure my venture to include both for-profit and not-for-profit elements?

• What are the various for-profit corporate models available to me?

• What legal structure provides the best liability shield? Should I worry about liability?

• How do I create an affiliate organization? Is this advisable?

• What are the benefits of using a new hybrid structure?

• What is the difference between L3Cs and B Corps? Is it too soon to use these options?

• What legal structure will best support raising funds and/or accessing capital?

• What is a joint venture?

• What is a cooperative?