Should You Structure Your Business as a Nonprofit?

Unlike a for-profit business, a nonprofit corporation may be eligible for certain benefits, such as sales, property, and income tax exemptions at the state level. The IRS points out that while most federal tax-exempt organizations are nonprofit organizations, organizing as a nonprofit at the state level doesn't automatically grant you an exemption from federal income tax.

4 Considerations When Determining the Best Leadership Structure for Your Business

How owners organize the management of a small business has a huge effect on internal and external growth. The question is, which leadership structure works best?

By nature, startups tend to start off with a horizontal structure, which follows an employee-centered approach -- fewer management layers with a wide span of authority. On the other hand, as small businesses grow, many adopt the traditional vertical structure, defined by an organizational hierarchy with strong management and subordinate employees.

At ClearCompany, we maintain a fairly horizontal structure and strive to empower employees at every level to be independent and entrepreneurial. We strongly believe in the power of transparency. We’ve found that sharing more information with our team allows them to make strategically-driven decisions that, in turn, enhance performance.

There’s no right or wrong way to structure a company’s leadership. Whether to go with a horizontal or vertical leadership model depends on a number of things, from company vision to size to the overall culture. Here are some pros and cons of each structure to consider, when determining which management style will drive business success:

6 Reasons Why 'My Way or the Highway' Management Doesn't Work Anymore

Say what you will about opposites attracting -- the fact is that for the most part, we feel drawn towards those who are most like us. This is especially the case in upper levels of management. A quick look at leaders within companies will reveal that there tends to be a common culture -- a workplace not of diversity, but sameness -- in thought and action.

But while it’s only natural to appreciate those who follow and never challenge us, being too comfortable can obstruct the innovation, leadership and direction necessary to drive your company forward. When I hire, I look for people who will challenge me -- those who aren’t afraid to tell me things that may be tough to hear. When making key decisions, I want to be surrounded by those who will question my strategies and suggest changes that I may not have thought of.

When assembling your team, you don’t want people who think the same as you and who will agree with you every step of the way. It may sound counter intuitive, but you want thought leaders who will challenge you, question you and force you to explain yourself. Here are six reasons why: