Thursday, July 30, 2015

Become A 501(C)(3) Business

Animal rescue is an exempt purpose under the Internal Revenue Code.


A 501(c)(3) business is an organization officially recognized by the IRS as being tax-exempt under section 501(c)(3) of the Internal Revenue Code, otherwise known as a non-profit. The greatest benefit of being an official non-profit is the assurance that any donations, gifts or charitable contributions to the business are tax-deductible. Much paperwork is involved in becoming an IRS-recognized non-profit.


Instructions


1. Organize your business either as a trust, corporation or association according to the laws of your state. For information on organize a business in your state, check with your state tax commission or the secretary of state's office. Most states issue pamphlets on organize a small business. Fill out form SS-4 to get an Employer Identification Number. You will need an EIN to qualify for 501(c)(3) exemption.


2. Ensure that you have organized for an exempt purpose recognized under section 501(c)(3). The IRS defines exempt purposes as: "charitable, religious, educational, scientific, literary, testing for public safety, fostering national or international amateur sports competition, and preventing cruelty to children or animals."


3. Complete Form 1023 and be sure to attach exact copies of your business' organization documents. If your business has existed for fewer than three years, include financial statements for the current year and budgets for the next two years in Part IX on Form 1023.


4. If you would like to designate an attorney or other third party to represent you, fill out Form 2848 and attach it to your application.


5. Sign and date the application, attach the appropriate user fee. Page 12 of Form 1023 will help you determine the appropriate fee for your organization. Mail the completed application to:


Internal Revenue Service


P.O. Box 12192


Covington, KY 41012-0192


If you choose to use express mail or a delivery service such as FedEx or UPS, sent the application to:


Internal Revenue Service


201 W. Rivercenter Blvd.


Attn: Extracting Stop 312


Covington, Ky. 41011

Tags: Internal Revenue, Form 1023, your business, your state, application Internal