QUESTION

What is the difference between profit and non profit competition?

Asked on Jan 03rd, 2013 on Labor and Employment - Washington
More details to this question:
This is for competing for the same type of business.
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3 ANSWERS

Theodore M. Roe
A for profit company can remove the profit from the company and pay shareholders. These are called dividends. Non-profit companies must reinvest their profits back into the company. They must also have special corporate filings with the State and IRS.
Answered on Jan 04th, 2013 at 9:04 PM

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Commercial Contracts Attorney serving Boise, ID at Peters Law, PLLC
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There are for-profit corporations and nonprofit corporations. The for-profit corporations have to pay taxes on their profits, the nonprofit corporations do not.
Answered on Jan 04th, 2013 at 9:04 PM

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A for profit corporation is a business that seeks to make a profit and distribute it to its owners. A non-profit keeps any revenue and uses it for the purposes for which the IRS has allowed non-profit status. Your question suggests you are asking about a covenant not to compete that makes a distinction between competing in a for profit business and a not for profit business. So if you provided housing for indigents as the manager of a Section 8 housing complex that was owned by a for profit company your agreement might preclude you from working for another for profit group, but not the Red Cross.
Answered on Jan 04th, 2013 at 8:28 PM

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