Overview of Wisconsin Non-Stock Corporation
A Wisconsin non-stock corporation is a non-profit business formed under state law. Non-stock corporations have members with membership interest instead of shareholders or "owners." To oversee the organization, members elect a board. Non-stock corporations are used for non-profit entities, volunteer organizations, and groups without profit motive.
Formation and Benefits
To form a non-stock corporation, articles of incorporation must be filed with the Wisconsin Department of Financial Institutions. The department allows electronic filing.
Benefits of a Wisconsin non-stock corporation include: limited liability protection for members, management through a board of directors, and the ability to dedicate assets to charitable causes. As non-profits, income cannot be distributed to members, directors, or officers.
Dissolution and Purpose
On dissolution, assets of a Wisconsin non-stock corporation must go to another non-profit or charitable cause. They cannot be distributed to members or individuals. This ensures assets further the public good.
Wisconsin non-stock corporations allow groups to incorporate for non-profit purposes while shielding members from liability. They provide flexibility in governance not available in other states, making them attractive for nonprofits.