IncBrothers can incorporate the non-profit in your particular state, and handle all article or certificate filings with the state. Just fill in the order form online or call our toll free number to speak with one of our representatives. IncBrothers can also assist with obtaining the non profit’s 501(c)(3) tax-exempt status.
*How many directors does a non profit corps need to be formed?
While some states allow 1 or 2 directors to form a non profit, many states require at least 3 directors to form it.
Having a non-profit corp does not mean that the corporation has tax-exempt status. 501(c)(3) refers to the provision of the IRS code which calls for a variety of non-profit organizations that can be exempt from certain federal income taxes. The IRS sets forth various requirements for becoming eligible for such exemptions. Many states reference Section 501(c) for definitions of organizations exempt from state taxation as well.
*What is a "Tax-Exempt" Organization?
The term "tax-exempt" is used in reference to non-profit corporations and generally refers to the net profits (proceeds over and above expenses) of a corporation being exempt from federal and/or state income tax, exempt from state sales and property tax (varies by state), and the ability to apply for certain grants and other allocations only available to 501(c)(3) organizations. Also, one of the main benefits of being tax-exempt under 501(c)(3) is the ability to accept donations which are tax-deductible to the individual providing the gift.
*What type of non profits are eligible to be tax-exempt under Section 501(c)(3) ?
Only non-profit corporations formed for specific purposes are eligible for tax exemption. Below is a list of acceptable 501c3 purposes as well as other tax-exempt organizations:
501(c)(3) |
Religious, educational, charitable, scientific, or literary organizations; testing for public safety organizations. Also, organizations preventing cruelty to children or animals, or fostering national or international amateur sports competition |
501(c)(4) |
Civic leagues, social welfare organizations, and local associations of employees |
501(c)(5) |
Labor, agriculture, and horticultural organizations |
501(c)(6) |
Business leagues, chambers of commerce, and real estate boards |
501(c)(7) |
Social and recreational clubs |
501(c)(8) |
Fraternal beneficiary societies and associations |
501(c)(9) |
Voluntary employee beneficiary associations |
*Once my non profit organization is formed, how do I make it tax-exempt?
IncBrothers can assist with forming your not for profit as well as the paperwork necessary to become tax exempt. Contact a representative for more information.
*How long does it take to be tax exempt / 501(c)(3) ?
The process usually takes approximately 6 months to complete. This will vary depending on many factors.