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Maverick, Attorney
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Experience:  20 years of professional experience
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What are the limitations of a nonprofit corporation in the

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What are the limitations of a nonprofit corporation in the state of Delaware? Also what i the law for nonprofit and for-profit corporations, as well as limited liability companies in the state of Delaware?
Submitted: 7 years ago.
Category: Business Law
Expert:  Maverick replied 7 years ago.


At the link above you will find the laws for corporations in Delaware.


At the link above you will find the laws for Delaware LLCs;


Typicallly, nonprofit corporation must observe the following limitations:

Pursuit of the following "exempt" purposes only: Charitable, educational, religious, literary, scientific or other specific purposes.

No distribution of financial gains to directors, officers or members.


Corporate assets may only be distributed to another tax exempt organization upon dissolution of the nonprofit corporation.

Participation in political campaigns for or against persons running for public office is prohibited.

Substantial engagement in legislative political activities is forbidden

The activities of the corporation must be carefully monitored to avoid triggering "unrelated business taxable income" (UBTI) from fund raising activities.




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