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NON-STOCK, FOR-PROFIT CORPORATION registration with SEC

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ersopman


Arresto Menor
Good day to our lawyers and members in this forum. I got a question.

Would it be possible to declare a trading corporation as "non-stock, for-profit" with SEC?

The corporation will function as a broker or 'middleman' between the supplier and its client being engaged in the oil industry. It will have five (5) members who are both the incorporators and directors of the corporation.

The corporation does not have any significant amount of capital to begin with and start a stock corporation. It will function similar to a "virtual company" without the need for renting office space.

The corporation intends to gather its initial capital through the monetary contributions of its members. It does not wish to start an IPO (Initial Public Offering) nor seek funds from external investors. It strictly wishes to keep ownership to its members.

Please let me know if it would be possible to declare a trading corporation as "non-stock, for-profit" as I think it is the most cost-efficient way in starting up a corporation.

Thank you.

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attyLLL


moderator
there is no such thing as non-stock, for profit corporation.the closest thing to that will be a partnership.

i recommend a stock corporation, but it will entail annual compliance reports. if things go wrong, the stockholders cannot be easily sued in their individual capacity and their loss is limited to the value of their stocks.


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