[chatmasta]

You do have a point, but it’s a marginal gain at best. Unless you’re operating on razor thin profit margins, it’s not going to make a significant difference in how much you have available to pay yourself. And when you do pay yourself, you and the company need to pay taxes, even if the company is exempt from some income tax.

But really the important point is you cannot sell your company. How many years of 10% extra salary is worth sacrificing your ability to liquidate all the blood sweat and tears you put into your company?

[nuggien]

the only advantage i could see in creating a non-profit vs a for-profit, specifically in this case, is that you get the free publicity and goodwill of customers at the start. "i'm creating a wordpress competitor" doesn't sound nearly as good as "i'm creating a wordpress competitor that can never be taken away from you because we are a non-profit". If you create a crappy product, it doesn't matter in the long run, of course.