MUTUAL BENEFIT CORPORATION

California Mutual Benefit Corporations are formed as non profit corporations because a mutual benefit nonprofit corporation is formed solely for the benefit of its members.  Generally, while it is a nonprofit corporation, a mutual benefit corporation is not a charity. Because it is not a charity, a mutual benefit nonprofit corporation cannot obtain 501(c)(3) status.  If there is a dispute as to how a mutual benefit nonprofit corporation is being operated, it is up to the members to resolve the dispute since the corporation exists to solely serve the needs of its membership and not the general public.  

A corporation for other than religious, charitable, civic league or social welfare purposes and planning to obtain tax exempt status under provisions other than Section 23701d, 23701f, 501(c)(4) or not planning to be tax exempt at all is a California Nonprofit MUTUAL BENEFIT corporation.

• The Statement by Mutual Benefit Development Association must be filed within 90 days after filing the original Articles of Incorporation.
• The street address of the association's onsite office or the street address of the responsible officer or managing agent of the association must file a complete statement within 60 days of any change.
• Failure to file the Statement by Mutual Benefit Development Association may result in the assessment of a penalty.