What types of business are tax exempt?

Certain types of organizations can be tax-exempt, primarily non-profit entities such as charities, religious organizations, educational institutions, and social welfare groups. These organizations typically qualify under specific sections of the Internal Revenue Code, like 501(c)(3) for charitable organizations. Additionally, government entities and some cooperatives may also enjoy tax-exempt status. It’s essential for these organizations to adhere to specific regulations to maintain their tax-exempt status.