Social Enterprise

The legal structure used to operate a social enterprise depends on a number of factors including:

• Purpose of the enterprise
• Ownership
• Decision makers
• Tax concessions required
• Funding model (capitalisation and investment)

Some major differences include:
1. A for-profit entity can distribute income and property to its owners (shareholders). A not-for-profit entity cannot (except in exceptional circumstances);
2. A for- profit entity which earns a profit will pay tax. Some not-for-profits are entitled to tax concessions;
3. Not-for-profits cannot raise funds from selling owners equity

Lesleigh has had extensive knowledge and experience helping organisations consider the best legal and tax structure for operating a social enterprise.