| Non-Profit
Corporations are formed for charitable,
scientific, religious or educational purposes,
etc. If the corporation is to qualify for
tax exempt status by donations then it has
to qualify with the IRS. Sometimes they
are referred to as 501(c)(3)
corporations. Please also note that
some non profit corporations must also qualify
as a 501(c)(4).
The
501(c)(3) is designated by the Internal
Revenue Code. The 501(c)(3) qualifies your
non profit corporation as being tax exempt.
The
non profit corporation will not be a taxable
entity as long as its activities are for
charitable, scientific, religious or educational,
or a combination thereof and as long as
it is issued the exemption.
Global
Corporate Services will arrange to form
your new corporation in such a manner so
as to be in compliance with state law and
qualify for the special 501(C)(3) exemption
status. We are associated with a legal firm
who will prepare and submit the paperwork
to the IRS to obtain the 501(C)(3) tax exempt
status. Once the application has been accepted,
you will receive a formal letter of determination
from the Internal Revenue Service. This
process, once properly submitted, takes
about 3 to 6 months.
Once
the IRS has issued the tax exempt status,
the corporation will be allowed to receive
tax free contribution.
Contributors
will be permitted to deduct the contribution
on their personal tax returns. You
must be approved by the IRS before donations
are considered tax deductible.
To
apply for 501(c)(3) status by having our
attorney file the forms click here.
Please
be sure to speak with a qualified legal
and/or financial advisor before making any
decisions. You may address your tax
questions to our Tax and Accounting Services
at tax@globalecorp.us. |