Archive for July, 2009

Forms LLC

To form an LLC or a limited liability company, the most important thing is to file proper documents under the local and state laws. To do this, you may need to consult an experienced attorney or can go through the legal website of your states LLC filing office to find the necessary details to file the forms. The forms needed for the LLC are the articles of organization, operating agreement, registration of statutory agent of the corporation, income tax reports. An easy way to get these documents prepared is to fill out the forms available for each section from the websites of your states LLC filing office.

Forms of Article of Organization
The Articles of Organization are one of the most important documents required to form an LLC. The Articles of Organization are legal documents that include details like the legal name of your organization, the registered office address, the names and contact numbers of the board members, stocks held by the company, and the price for each stock. These are general basic forms that provide pertinent information about your organization.

Certificate of Incorporation
The certificate of incorporation form is available on the legal websites of the LLC filing office of your state. Some of the required details are the legal name of the corporation, registered office address, the name and contact numbers of the members of the board of the organization, and the total amount of assets managed by the corporation. This certificate of incorporation gives your limited liability company a legal business identity.

Tax filing forms
The limited liability companies must complete the tax filing forms at regular intervals. The tax schedules of the state and federal governments vary depending on whether it is an LLC, corporation or partnership. These forms can be completed at quarterly and annual intervals.

Action of Incorporator
Action of Incorporator is an important form to be filled in by the owners of an LLC. This usually helps to form the bylaws of organizations and may be prepared by the directors and members of the board. The bylaws generally include details of name of the corporation, the name and contact details of the members of the organization, amendments of the corporation, and the executive board. The Action of Incorporator also enables the organization to run its business smoothly and successfully without any major legal issues.

Non-Profit Business Incorporation and Tax Advantage

Corporations involved in areas like education, scientific research, religion or charity can apply for nonprofit business incorporation. Such incorporation provides limited liability to the members of management. Incorporating a nonprofit company helps in its legal protection to safeguard the personal savings as well as assets from the activities of the corporation. Most forms of nonprofit business incorporation take the benefit of 501(c)(3) tax-exempt status with the Internal Revenue Service (IRS).

Nonprofit corporations that get 501(c)(3) tax exempt status have the following benefits:

• The directors, officers as well as members have complete personal asset protection as well as limited liability
• Tax exemption from federal income tax
• The incorporation is eligible for grants from private and pubic bodies
• The donations offered to these nonprofit incorporations are tax deductible
• They have perpetual existence which means that if the director or owner decides to leave the corporation or passes away, the business still continues to exist
• Property taxes exemption

The main reason for setting up a nonprofit corporation is to get funds from various government agencies as well as from private organizations. Though it enjoys tax-exempt status as well as personal liability protection, it has its own legal and taxation procedures. It is very important to find out all taxation details prior to setting up a non-profit corporation. As non-profit corporations are business organizations involved in public service, they need to follow special rules. Unlike a for-profit business in which the profit is distributed among owners and shareholders, with a nonprofit setup all the profit remains within the corporation.

Non-Profit Filing in Different States

Non-profit corporations are organizations set up for reasons other than generating revenue and making profit. These organizations need to adhere to the different state laws which depend on the state in which they have been set up. When applying for 501(c)(3) tax-exempt status, you need to apply for federal as well as state tax exempt status which changes depends on the state. These corporations can apply for federal tax-exempt status by filing form 1023 with the IRS.

Documents

To form a non-profit corporation in a particular state, a non-profit certificate of incorporation needs to be filed with the state agency along with the filing fees. The formation documents need to have all the relevant information along with details related to the business (like a detailed business purpose statement for getting tax-exempt status for the particular state). After that, form 1023 needs to be filed with the IRS.

Applying

In most states, it is not necessary to apply to the state for non-profit filing but in some states it is necessary to prepare a simple application. California is the only state that requires a separate application process for setting up a non-profit corporation. In California, along with federal tax-exemption, there is a need for state income tax liability from the California Franchise Tax Board. While some states are satisfied with federal tax-exempt status, some require separate state tax exemption. For filing for non-profit tax exemption status, there is a need to send a copy of the IRS determination letter.