Replies to post #116156 on Blum Holdings Inc (BLMH)

[Art Vandeley]

True, but the profits stay within the nonprofit or get donated to another nonprofit and do not get distributed to shareholders. In other words, if IVXX, LLC is a nonprofit org, the profits won't get kicked up to their only shareholder TRTC and stay in IVXX,LLC to pay salaries and other expenses related to running the business.

I am not saying IVXX,LLC was formed as a nonprofit but it could be, especially since MMJ businesses in CA are supposed to be nonprofit orgs.

A non-profit organization is a group organized for purposes other than generating profit and in which no part of the organization's income is distributed to its members, directors, or officers. Non-profit corporations are often termed "non-stock corporations." They can take the form of a corporation, an individual enterprise (for example, individual charitable contributions), unincorporated association, partnership, foundation (distinguished by its endowment by a founder, it takes the form of a trusteeship), or condominium (joint ownership of common areas by owners of adjacent individual units incorporated under state condominium acts). Non-profit organizations must be designated as nonprofit when created and may only pursue purposes permitted by statutes for non-profit organizations. Non-profit organizations include churches, public schools, public charities, public clinics and hospitals, political organizations, legal aid societies, volunteer services organizations, labor unions, professional associations, research institutes, museums, and some governmental agencies.

https://www.law.cornell.edu/wex/non-profit_organizations