Can a Texas for-Profit Entity Merge With a Texas Nonprofit Corporation?

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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