For-Profit Making Entity

For-profit entities aim to generate profits for their business and stakeholders. Success is measured by revenue exceeding costs. Public companies have multiple investors, while private companies have restricted share trading. They face taxes based on profit levels, with the current US tax rate at 21%. The US tax system includes federal, state, local, and special-purpose jurisdictions. Tax incentives like cash grants and tax abatement are used to encourage tax payment.

Not-For-Profit Entity

Not-for-profit entities work for community welfare, providing educational, religious, or charitable services. Owners don't make money, and funds are used for societal activities. Donations support their operations. They may be exempt from taxes like sales and property taxes, but employers pay taxes for employee benefits like social security. Tax-exempt status, such as 501(c)(3), can be applied for. Not-for-profit organizations have paid staff and volunteers working for societal betterment.