Non-Profit Filing in Different States
Posted on Monday 13 April 2009
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.
TAGS: Non-Profit Corporation,
Non-Profit Organization
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