• Joe Trinh

What is a non profit, mutual benefit company under California law?

What is a mutual benefit corporation California? A mutual benefit corporation is an organization created for the benefit of a group whose tax-exempt status under IRS rules differs from that of 501(c)(3). A variety of entities fall under the mutual corporation category in California.

Types of Nonprofit Corporations

There are three primary types of nonprofit corporations in California based on their activities:

1. California nonprofit public benefit corporation.

2. California nonprofit religious corporation.

3. California nonprofit mutual benefit corporation.

California Nonprofit Mutual Benefit Corporation

Examples of California nonprofit mutual benefit corporations include community associations registered under 501(c)(4) and business chambers of commerce registered under 501(c)(6). As long as a mutual benefit corporation is operational and not dissolved, its members cannot withdraw the organization's assets.


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