In Texas, how do you apply for a tax exempt number?

Question

We are a Women's group in our church that wants to open a bank account to keep funds separate from the church's accounts. We would like to apply for our own tax exempt number (which the bank is requiring). I am not sure where to start. As it stands now we have to go to the board to get approval to cut a check. An example where this is inconvenient is when we make blankets for the veterens or the senior citizen home we shop a several places to get the best price on fabric. It wastes money to have to wait for several checks.

Answer 1

The following link will take you to IRS form 1023 which is the application for exempt status. With instructions it is 28 pages long and rather complex. You may be required to file for incorporation with the state of Texas. I would suggest that you find someone to assist you who is from your area who has recently completed this process for their church before you try it.

There is one other approach that can be used for groups such as yours. If the board of your church will authorize the use of their tax ID number you could open a separate bank account using their number. The board should require you to submit a budget and annual report but you should do so any way.
Here is the link to the form;
http://www.irs.gov/pub/irs-pdf/f1023.pdf

Answer 2

I got a tax exempt number for my own business at my local county building. I'm sure that if you contact someone at your county building that they will be able to walk you through it...besides, they do it every day!

As far as I know you shouldn't have to incorporate unless that is what you wish to do. Also, talk to your church leaders about this if you haven't already. Churches are tax exempt so they may already have a tax-exempt number in place for other uses.

Another quick piece of advice, stick with a small local bank for your checking account. They are much friendlier to small organizations, don't have as many fees and have fewer hoops to jump through on your way to obtaining your account.

Good luck & enjoy serving your fellow man!

Answer 3

just use the church's number, then set up the bank account with different signing authorities. organizations can have several bank accounts.