The nature of a for-profit corporation is such that it is required to pay applicable taxes and register with the state.
[6] A for-profit corporation can also be seen in context of a limited liability company as both of them have a very similar function.
Both of them are common in a way as stakeholders in a for-profit corporation are called shareholders whereas a person who has stakes in a Limited Liability Company is referred to as a member.
[7] As these organizations aim to maximise profit they can be very healthy in an economy as the more they earn the greater is the amount they pay in taxes.
Their profit maximisation motive also means that they will work on their productivity and will contribute to the GDP of any country they are living in.
The major distinction between these two organizations can be derived from their names as a non-profit organization does not seek any profit, does not pay any taxes as it works for the welfare of the society and reinvests any surpluses earned back to the business.
Although both for and not-for-profit need a good decision making body however the aspect of serving the public puts an extra responsibility on the members of the board.
This includes these corporations as they are trading or offering services(charged) to others, investing and are also dealing with the inflow and outflow of income.