If a business is a corporation, then make sure to include INC at the end of its name!

QUESTION.
We are a nonprofit corporation that functions similar to a church. I would like to print up business cards for the priest. These cards will include his name as well as the name of the organization. However, I would like to exclude the designation "Inc." that one traditionally includes after the name of a business corporation. Is there a legal reason why I would want use the "inc" in the organization's name? The reason why I do not want to include "Inc." is that it sounds too legal and more like a for-profit organization. Any advice you can offer would be most appreciated.

ANSWER.
Sounds like you have been talking to someone with a little legal know-how about liability law, but they couldn't fully explain to you what they knew. Your question is very pointed, and not one that many people would pose.

Let me ask you what you think the difference is between the following two businesses: (1) Nonprofit Center and (2) Nonprofit Center, Inc.?

The first is an unincorporated for-profit business using the fictitious name "Nonprofit Center." I know this because a nonprofit has to be incorporated to qualify for Section 503(c) tax-exempt treatment under the Internal Revenue Code. And without the "Inc" after the business' name I know it is not a corporation. And since it is not a corporation it is not a separate legal entity from its owners and the owners can be personally liable for any damages caused me by the business. Let's say that someone slips and falls on the front step of the Nonprofit Center and hurts themselves. They can sue the priest and possible get a judgment against him for everything he owns.

The second is an incorporated organization (for-profit or nonprofit?) using the fictitious name "Nonprofit Center, Inc." I know this because "inc" is used at the end of the name. And if someone slips and falls on the Center's front step their only recourse is to sue the organization since it is the owner of the front step. The priest who runs the center is not personally liable because he does not own the front step of the center. The organizaton is a separate legal entity different an apart from the priest.

So the answer to your question is that the ""inc" should be included on the priest's business card if you want to make sure the Nonprofit Center is recognized as a separate legal entity different and apart from the priest.

I hope my comments are helpful to you. Regards, -Jeff

Jeff Lippincott
SCORE.org Counselor
Princeton, NJ
scoreprinceton @ aol.com
www.scoreprinceton.org
www.jlippin.com