For-profit organization

A for-profit organization is an entity whose primary goal is to earn income. Most business entities are considered to be for-profit organizations. Examples of for-profit organizations are:

  • Airlines

  • Construction companies

  • Freight hauling companies

  • Manufacturers

  • Publishing companies

  • Restaurants

  • Retail stores

  • Shipping companies

The reverse of a for-profit entity is a non-profit, where the goal is some type of community service, with the organization earning no profit at all. Examples of non-profit entities are churches, festivals, and emergency services organizations.

A key differentiating factor between for-profit and non-profit entities is that for-profit firms pay income taxes, which are then used to support various government entities. Some of these funds may also be used to support certain non-profit entities. Also, for-profit organizations have a much easier time obtaining funds, since lenders are more likely to be paid back, and investors can earn a return.