16 CFR § 802.40 - Exempt formation of corporations or unincorporated entities.

---
identifier: "/us/cfr/t16/s802.40"
source: "ecfr"
legal_status: "authoritative_unofficial"
title: "16 CFR § 802.40 - Exempt formation of corporations or unincorporated entities."
title_number: 16
title_name: "Commercial Practices"
section_number: "802.40"
section_name: "Exempt formation of corporations or unincorporated entities."
chapter_name: "FEDERAL TRADE COMMISSION"
subchapter_number: "H"
subchapter_name: "RULES, REGULATIONS, STATEMENTS AND INTERPRETATIONS UNDER THE HART-SCOTT-RODINO ANTITRUST IMPROVEMENTS ACT OF 1976"
part_number: "802"
part_name: "EXEMPTION RULES"
positive_law: false
currency: "2026-03-24"
last_updated: "2026-03-24"
format_version: "1.1.0"
generator: "[email protected]"
authority: "15 U.S.C. 18a(d)."
regulatory_source: "43 FR 33544, July 31, 1978, unless otherwise noted."
cfr_part: "802"
---


# 802.40 Exempt formation of corporations or unincorporated entities.

The formation of an entity is exempt from the requirements of the Act if the entity will be not-for-profit within the meaning of sections 501(c)(1)-(4), (6)-(15), (17)-(20) or (d) of the Internal Revenue Code.

[70 FR 11514, Mar. 8, 2005]