While non-profit organizations are becoming more important and popular each year, they are surprisingly difficult to start. Even if you have past experience with forming a standard business or corporation, establishing an organization with tax-exempt status requires following some pretty strict rules that are often challenging to understand.
Fortunately, help is available from a startup entity formation lawyer with years of experience like Jess Birken. By working with skilled legal counsel from start to finish, you could get your organization started as quickly as possible with minimal headache.
What to Do Before Filing Any Paperwork
Perhaps counterintuitively, there is a lot of work that must be done before actually establishing a non-profit. Before drafting any founding documents or even selecting a name for your new company, it is crucial to think about the question of why starting this kind of business is the right decision in the first place. Afterward, coming up with an answer to explain to board members, donors, and similar organizations is key.
After you make these first couple of decisions, the next step is coming up with the non-profit’s foundation, which includes things like the mission statement, business name, and business plan. Any solid business plan should include expected income, predicted expenses, staff requirements, and details about the best employees for the job.
Finally, after navigating these steps, a potential tax-exempt organization needs to solidify a Board of Directors with a president, Secretary, and Treasurer before it can begin the incorporation process. If you are working on these initial stages, the first thing you should do is retain an attorney like Jess Birken; someone who has experience with startup entity formation and could offer personalized advice.
Obtaining 501(c) Tax-Exempt Status When Starting a Non-Profit
After these initial brainstorming and planning steps, a non-profit founder can usually move forward to complete some important paperwork and documentation. For instance, submitting Articles of Incorporation and asking the IRS for an employer identification number (EIN) are all crucial tasks.
Additionally, if a new non-profit wants to be exempt from paying federal taxes, they need to meet all the criteria for, and then successfully apply for, tax-exempt status under Section 501(c)(3) of the Internal Revenue Code.
This code establishes a few important regulations, including that a new non-profit or tax-exempt company cannot benefit any private interests or participate in political activity like supporting candidates.
If you need help handling IRS documents, applying for federal tax exemption, or making sure that your startup entity does not break any existing rules, Jess Birken and her law practice could help minimize potential complications.
Consider Working with a Startup Entity Formation Attorney
Forming a non-profit can give you a new purpose in life and help you make the world a better place. However, there are many potential problems that might come up during the various stages of creating your unique startup entity. Retaining a startup entity formation lawyer could be key to getting your non-profit started on the right foot. Call today to learn more about your options.
Birken Law Office – Law firm serving nonprofits organizations, and foundations – Birken Law