The San Luis Obispo attorneys for nonprofits corporations at Toews Law Group, Inc. are well versed in the rules, regulations, and procedures in establishing nonprofit organizations in California that qualify for tax-exempt status at the state and federal level.
Nonprofit and not-for-profit organizations come in many different shapes and sizes. In fact, there are actually 29 different categories listed in section 501(c) of the Internal Revenue Code under which an organization may qualify. These include charitable or religious organizations (often referred to as a 501(c)(3)), private foundations, political organizations, and others such as chambers of commerce, social clubs, and labor, agricultural, or horticultural organizations.
When a nonprofit qualifies under section 501(c), it means that the organization is exempt from paying income taxes because it is operating exclusively for exempt purposes and not for the benefit of shareholders or any private interests, however, it is possible that the organization may still be required to file annual returns and pay other taxes. For instance, exempt organizations with employees are still responsible for paying employment taxes and some may even be subject to excise taxes. Furthermore, 501(c) organizations may deduct contributions received as a business expense, but only 501(c)(3) organizations may receive tax-deductible charitable contributions from donors.
If you are considering starting a nonprofit in San Luis Obispo County or anywhere in California, whether you have determined your purpose or if you are just looking for some guidance, the San Luis Obispo nonprofit attorneys at Toews Law Group, Inc. are available to help during every step of the process starting with:
- Determining the best type of organization
- Incorporating with the State of California
- Organizing the Board of Directors and regular meeting schedules
- Creating and filing the Articles of Incorporation
- Prepare by-laws
- Set up the corporate records binder
- Obtaining tax-exempt status from the Internal Revenue Service (IRS) and California Franchise Tax Board (FTB)
- Meet all state reporting and registration requirements
- Meet any local requirements
- Explaining the specific regulations and procedures required under State and Federal rules along the way
- Providing ongoing assistance with maintaining your nonprofit and tax-exemption status
Contact Toews Law Group, Inc. to get started today.
Toews Law Group, Inc.
1212 Marsh Street, Suite 3
San Luis Obispo, CA 93401
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