Yes, this is possible. However, the reverse is not true. Section 10.108 of the Business Organizations Code (BOC) prohibits a Texas nonprofit corporation may not convert to a for-profit entity. If your wish to merge your for-profit entity with a nonprofit, there are certain restrictions. Section 10.010 of the BOC requires that the Texas nonprofit corporation continue as the surviving entity to the merger. In addition, section 10.010 of the BOC prohibits a Texas nonprofit corporation from merging with another entity if the Texas nonprofit corporation, because of the merger, will lose or impair its charitable status. If these conditions are met, a merger may be a viable option for the nonprofit entity.
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The Perliski Law Group is dedicated to serving the needs of Texas nonprofit organizations. We presently represent over 100 nonprofit clients and our clients range from small hometown churches to large state-wide organizations with thousands of members. Our Firm has passion for assisting charities both small and large. Share your vision with us.