Purchase of for-profit corporation by nonprofit
Can a nonprofit corporation buy the stock of a for-profit corporation (as opposed to the assets)?
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Read More Answered By: Steven Rinaldi |
Re: Purchase of for-profit corporation by nonprofit Yes. However, the not for profit cannot engage in any activities, which that non profit may not engage in under federal tax laws. Rather all of those actives must be placed in the for profit entity. The for profit entity must have its own seperate books and records. If the non profit provides any services to the for profit, the reimbursement for such services must be at an arms length price. All services provided by the non profit to the for profit must be documented in a written agreement.
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