BizTerm Definition
Mutual Benefit Corporation
Short Definition
Corporation set up for the benefit of its members
Full Definition

Defined by state statutes, it is usually a non-profit corporation which by default does not qualify to be either a religious or public benefit corporation. It is a corporation which is formed solely for the benefit of its members. A common example of mutual benefit corporations are clubs. Mutual benefit corporations are not a charity and therefore are not eligible to obtain 501(c)(iii) status.


Mutual Benefit California Corporation

A corporation for other than religious, charitable, civic league or social welfare purposes and planning to obtain tax

exempt status under provisions other than Sections 23701d, 23701f, 501(c)(4) or not planning to be tax exempt at

all is a nonprofit MUTUAL BENEFIT corporation.

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