While most business owners choose to make as much money as possible from their products or services, some opt for a different route by listing themselves as a non-profit organization (NPO). While this means that you can’t rake in money and keep it as a profit, it does come with some upsides. As such, if you’re thinking of a starting an NPO for any reason, here are a few of the tax benefits non-profits provide:

Tax Exemption

First and foremost, since your business is not reporting any profits, you don’t have to pay any corporate or income tax. This is a direct result of getting a “non-profit” status, which is otherwise known as 501(c)3 in the tax code.

Grant Possibilities

Since your business is not technically making any money, with all of your profits going towards other purposes (such as charity), you are eligible for some grants that are offered by the government. Grants assist non-profits in a variety of projects and missions.

Separation of Entities

As far as paperwork and legal standing go, an NPO is treated much in the same way as a corporation. While filing for a business license as a non-profit, the company’s assets and taxes are separate from your own, so you don’t have to worry about the two becoming entangled in the future.

Limited Liability

If something does happen to your business, there is not a whole lot that creditors or lenders can do as far as coming after assets. Also, since you are separate from the company itself, you don’t have to worry about your own taxes or money being seized on behalf of your NPO. Overall, it helps ensure that you and your business stay separate.

If you’re interested in starting a non-profit, then you will have to fill out a lot of paperwork, including an EIN form and a tax exempt form. The process is a little complicated, but the benefits can make it all worthwhile.