or would it be better for me to just stat the way i am ...I know petsmart has alot of things that would help out alot if I became tax excempt
2007-01-02 05:27:21 · 5 answers · asked by GrassRootsRabbits 3 in Business & Finance ➔ Taxes ➔ United States
Hi you need to apply for 501 status. It not every hard it runs about $150 And take 30 day after all the paperwork is done. I just helped some friends do it. Start with calling the city.
2007-01-02 05:36:30 · answer #1 · answered by chitcha 1 · 0⤊ 0⤋
You need to form a not for profit corporation under your state's corporation law. Then you file a Form 1023 with the IRS enclosing the corporation's articles of incorporation and bylaws. The articles and bylaws must make clear that the corporation is to be operated solely for exempt purposes. The Form 1023 calls for financial statements and information showing that you are not using the entity to benefit yourself or any other person. There are clearly some hurdles to navigate. The local bar association may have a pro bono list (look for the tax specialist) or a local law school may have a tax clinic that can help. In either case, you will need to pay the filing fee to form the non-profit corporation and to apply for the federal tax exempt status. Your state may also require a filing after the federal exemption is granted.
2007-01-02 05:35:12 · answer #2 · answered by mattapan26 7 · 1⤊ 0⤋
Kara, Great Business!
Establishing 501c3 classification with the internal revenue service is tough, but not impossible. Check the IRS website for some helpful forms and links.
If you live in an area that has a small business incubator or development center, they can help you fairly inexpensively. You are going to have to spend a little for an attorney, unlike standard corporations, 501c3's have some complexity and tougher reporting standards, it would be wise to get some assistance before filling the paperwork.
Best of Luck on a worthy endeavor!
2007-01-02 05:32:48 · answer #3 · answered by ASUQB1 2 · 1⤊ 0⤋
Check out the www.irs.com website. If you are a charitable or non-profit organization, then you will just have to fill out their forms to gain exept status. If you are a "for profit" organization, then you are likely out of luck, though some of your expenses may be deductible. A tax attorney can help you with this.
2007-01-02 05:33:34 · answer #4 · answered by Mr. Taco 7 · 0⤊ 0⤋
Are you talking about "not-for-profit" status?
I think all you have to do is file a licensing application as a non-profit and follow the rules.
Otherwise, the only way to be tax exempt is to make no profits.
2007-01-02 05:30:35 · answer #5 · answered by Anonymous · 0⤊ 0⤋