Robinson Law Offices P.C. has experienced nonprofit tax-exempt lawyers that can help you properly start a nonprofit organization. These steps include:
Our nonprofit attorneys will help you determine if you need your own exempt status or whether you may currently just need the “covering” of an existing exempt entity that is related by activities and objectives.
We can provide all of the organizational documents you will need to operate as a nonprofit entity in your state, including bylaws and meeting minutes, and resolutions. Documents prepared by qualified nonprofit organization attorneys will include necessary language for the state, and later, IRS approval.
Our nonprofit lawyers will prepare and file Articles of Incorporation under the Non-Profit Corporation Statutes in your state. You will need to provide the required state filing fee, and in some states, other fees, such as publication or additional local county filings.
We will file the IRS form SS-4 (which can be done online) to obtain a federal EIN # for the corporation.
We will prepare and file the IRS Form 1023 “Application for Tax-Exempt Status” and all associated schedules and documents required. The documents are very detailed, and critical information is supplied that the IRS will use to determine if your organization is qualified to be treated as tax-exempt. You must be prepared to pay the IRS “user fee” (which is like a filing fee to be submitted with the application) for the determination of non-profit status. The amount of the fee is based upon the proposed revenue of the organization.
Wait and wait. Several months will pass while your filed application is being processed by an IRS-exempt organizations specialist. Frequently the IRS examiner will ask for additional information to clarify or further explain your application. This may occur multiple times during the process.
Our experienced nonprofit tax-exempt attorneys will represent you throughout the whole application process. We will not only prepare the documents for you but we will respond to all inquiries by the IRS. Finally, after several months the IRS will render its decision to grant or deny the request for tax-exempt status.
Once approved you simply must conduct the type of activities you stated in your application. You must also keep appropriate books and records to demonstrate to the IRS if ever asked that your expenditures are in line with your exempt purposes. You may have to file an information-only return such as Form 990.
Most tax-exempt organizations, other than churches, must file a yearly return with the IRS. If an organization does not file as required for three consecutive years, the law provides that it automatically loses its tax-exempt status.
Loss of exempt status means an organization must file income tax returns and pay income tax, and its contributors will not be able to deduct their donations. This is a very big deal and makes it critically important for you to rely upon the professional advice of your legal counsel and accountant.
Robinson Law Offices P.C. nonprofit tax-exempt attorneys want to ensure you maintain your exempt status. When you hire us to submit your application for state and federal recognition of your nonprofit corporation and tax-exempt status we instruct you on proper organization maintenance when that IRS recognition is given.
We will instruct you on what records you should keep tracking donations, expenditures, and classifications of income. We will recommend that you hire or outsource a bookkeeper or accountant versed in nonprofit accounting to provide reports to the board and/or members of the board. Robinson Law Offices P.C. wants to develop a long-term relationship with your organization and enjoy watching the growth and prosperity of your nonprofit. Call us today for a free nonprofit tax-exempt consultation on how we can help you.
