IRS 501c3 Nonprofit Tax Exempt and Expert 501c3 Nonprofit Paralegal Services since 1994

You have a dream - let me help you achieve it!

At ATTORNEY ALTERNATIVE, our expert staff of 501c3 nonprofit Paralegals are highly trained and experienced in preparing all IRS 501c3 documents required to set up your tax-exempt 501(c)(3) Nonprofit Corporation anywhere in the United States!

We will:

* Expertly draft your tax-exempt 501(c)(3) Nonprofit Corporation Articles of Incorporation

* Prepare your 501c3 Nonprofit Corporation Corporate Bylaws

* Prepare model 501c3 Nonprofit Corporation Minutes to follow for the First Meeting of the Board of Directors

* Prepare all Federal 501c3 Nonprofit Corporation forms required by the Internal Revenue Service (IRS 1023 Application for Recognition of Tax-Exempt Status, Forms 872 and 8713, and all IRS attachments)

* Prepare your State exemption application and attachments

* Assist you in preparing your 501c3 Nonprofit Corporation Mission Statement, Statement of Purpose, and other required documentation.

* Obtain your Federal Tax ID Number (EIN)

WE DO IT ALL!

for a single low flat fee of $1,295.00

(plus the applicable Federal and State filing fees)

IF YOU DON'T NEED AN ATTORNEY'S ADVICE...

DON'T PAY AN ATTORNEY'S PRICE!

Click To View Attorney Alternative's New Advertisement: (Windows) (Mac)

The President of Attorney Alternative, Thomas A. Hicks, JD, graduated Law School with honors, and is a noted lecturer on the procedures and regulations involved in setting up a 501c3 Tax-Exempt Nonprofit corporations NATIONWIDE!

He has presented his educational seminar titled:

"Why and Why Not to Start a Nonprofit"

to Volunteer Centers and numerous other civic, educational and community groups in the Southern California area.

The following is some basic information regarding a 501c3 Nonprofit Corporation.

If you have further questions, contact us and we’ll be glad to give you more – more service, more information, more time to concentrate on your business and less time worrying the paperwork!

What is a Nonprofit Corporation?

State laws distinguish between General, For-Profit (stock) corporations and nonprofit (nonstock) corporations. In a For-Profit corporation, shareholders are authorized to receive stock in exchange for capital investments in the corporation. This capital investment often takes the form of money, equipment, or some other property. Shareholders in a For-Profit corporation only receive a return on their investment when dividends are declared and paid.

A Nonprofit corporation, however, can not issue shares and cannot pay dividends. In addition, under the Internal Revenue Code (IRC) Section 501(c)(3), a tax-exempt corporation cannot pay dividends AND, upon dissolution, must distribute its remaining assets to another nonprofit group.

Advantages of Nonprofits

Tax Exemptions
Under Internal Revenue Code Section 501(c)(3) a non-profit corporation is eligible for certain federal and State tax exemptions. With income tax rates as high as 34% on corporate income over $75,000, tax exemption status can be invaluable.

Receiving Public Funds
Many organizations are required by law to donate a certain percentage of their funds to non-profit organizations or risk endangering their own tax-exempt status. In addition, many exemptions exist for property transferred at death to a non-profit organization.

Also, there are public foundations, philanthropic organizations and corporate grant-makers that provide funding for tax-exempt organizations. But, be aware that virtually any donor or sponsor thinking of funding your operation will insist on your organization having already obtained a 501(c)(3) number before they will consider donating.

Limited Liability for Members and Directors
As with a General, for-profit corporation, directors, trustees, and officers of non-profit corporations are usually afforded the same limited liability status. Thus, creditors of the nonprofit corporation can only reach as far as the corporation's assets to satisfy corporate debts and not the personal assets of the people involved in the nonprofit corporation.

Exceptions to the Limited Liability Rule

Personal Guarantees
Where a corporation has not yet established a credit rating, banks and other creditors will often require a personal guarantee from corporate directors before extending credit. Thus, the individuals will be liable for the debt if the corporation defaults on its obligation.

Tax Obligations
State and federal governments have the power to hold corporate officers and directors personally liable for reporting and payment of taxes. Although your nonprofit corporation should be tax exempt from certain taxes, your corporation may still be required to file informational returns and annual reports to the state and federal governments...and don't forget about employee withholding taxes.

Violation of Statutory Duties
Corporate officers and directors have a statutory duty to act responsibly when engaging in corporate activities. Thus, if an individual acts grossly irresponsibly, he or she may be held personally liable for his or her actions

Separate and Perpetual Existence
A nonprofit corporation, like a for-profit corporation, is an entity with a perpetual existence that may outlive all of its founders. In addition, the corporation can act like an individual in that it can enter contracts, incur debt, own property and it can sue and be sued.

Employee Benefits
The principle of a nonprofit corporation can be employed by the corporation. As such, these employees can be eligible for fringe benefits not available to self-employed people. Examples of these benefits include, sick pay, group life insurance, accident and health insurance, and corporate pension plans.

Other Advantages:

• Nonprofit corporations under 501(c)(3) receive lower postal rates on bulk mail

• many organizations offer discounted advertising rates to nonprofit entities

• many internet service providers offer discounted rates to nonprofit corporations

• many national chains (Costco, for example) offer lower membership rates

• nonprofit corporate employees may qualify for job-training and other work-study programs subsidized by the federal government.

Disadvantages of a Nonprofit Corporation

Paperwork

Articles of Incorporation, Bylaws, and Minutes
Articles of Incorporation must be prepared and filed with the Secretary of State in California. In addition, Bylaws must be prepared, minutes must be maintained, and certain federal and state tax exemption filings must be timely filed to attain a tax-exempt status.

We'll make it easy. Attorney Alternative will prepare and file your Nonprofit Articles of Incorporation in California. In addition, and unlike almost everyone else out there, we will prepare your 501c3 Federal and State Exemption Applications too!

Federal & State Tax Filings
What forms must be completed for tax exemption?

On the Federal level, IRS form 1023 plus a number of attachments must be completed to qualify for 501(c)(3) Federal Tax Exempt status. Although certain groups like churches are NOT required to file Form 1023, it is recommended that these exempt organizations nonetheless submit the filing to ensure that the IRS views the organization as a tax exempt entity.

Only after a corporation is approved by the IRS as a 501c3 Tax Exempt Organization can it rest assured that it is in fact a tax-exempt entity.

Nonprofit 501(c)(3) Corporation FAQ's

When must form 1023 be filed?

IRS form 1023 must be filed within 15 months of the date your articles of incorporation were filed. If your filing is timely, the tax-exemption will be retroactive and will apply to the date your articles of incorporation were filed.

How Many Directors Must My 501c3 Nonprofit Corporation Have?

The State of California requires only one director for a valid nonprofit corporation. However, in considering your application for 501c3 tax-exempt status, the IRS typically likes to see at least 3 directors, the majority of whom are not related by birth or marriage. For example, if you have 3 directors, but two are husband and wife, the “49% rule” says that you must have a majority of directors that are not related. Therefore, if a husband and wife want to be directors, you need 3 additional directors (total of 5) to adhere to the “disinterested persons” rule for directors of nonprofits.

For What Purposes May a 501c3 Nonprofit Corporation be Formed?

Under IRS Code 501(c)(3) a Nonprofit corporation may be formed to operate for a religious, charitable, educational, literary, or scientific purpose. These five purposes are included as purposes accepted by California as well as valid Nonprofit corporate purposes.

What are some of the limitations imposed upon a501c3 Nonprofit Corporation?

A 501c3 nonprofit corporation must observe the following limitations:

• Pursuit of the following “exempt” purposes only: Charitable, educational, religious, literary, or scientific purposes.

• No distribution of financial gains to directors, officers or members.

• Corporate assets may only be distributed to another tax exempt organization upon dissolution of the nonprofit corporation.

• Participation in political campaigns for or against persons running for public office is prohibited.

• Substantial engagement in legislative political activities is forbidden

• The activities of the corporation must be carefully monitored to avoid triggering “unrelated business taxable income” (UBTI) (You need to be very careful about this issue when considering the type and frequency of your fundraising efforts! The advice of an expert is a good idea here!)

Want to get started as a 501(c)(3) Nonprofit Corporation TODAY?

Then contact ATTORNEY ALTERNATIVE TODAY, and let us take the hassle out of getting you set up and headed towards realizing your dream…

Attorney Alternative
16162 Beach Blvd., Suite 207
Huntington Beach, CA 92647

TOLL FREE:

1-866-4NOLAWYERS

(1-866-466-5299)

E-mail: Click Here

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Click on the following links for more information on our professional Paralegal and Mediation services:

Legal Document Assistant Services

Mediation

Divorce

Bankruptcy

Living Trusts

Incorporations

Nonprofit 501c3 Corporations

Core Values


		Tom Hicks, JD * Honors Graduate - Western State University College of Law * Certified Mediator	Serving the Charitable Community with Professional, Affordable 501c3 Nonprofit Corporation Services Since 1994
		You have a dream - let me help you achieve it! At ATTORNEY ALTERNATIVE, our expert staff of 501c3 nonprofit Paralegals are highly trained and experienced in preparing all IRS 501c3 documents required to set up your tax-exempt 501(c)(3) Nonprofit Corporation anywhere in the United States! We will: * Expertly draft your tax-exempt 501(c)(3) Nonprofit Corporation Articles of Incorporation * Prepare your 501c3 Nonprofit Corporation Corporate Bylaws * Prepare model 501c3 Nonprofit Corporation Minutes to follow for the First Meeting of the Board of Directors * Prepare all Federal 501c3 Nonprofit Corporation forms required by the Internal Revenue Service (IRS 1023 Application for Recognition of Tax-Exempt Status, Forms 872 and 8713, and all IRS attachments) * Prepare your State exemption application and attachments * Assist you in preparing your 501c3 Nonprofit Corporation Mission Statement, Statement of Purpose, and other required documentation. * Obtain your Federal Tax ID Number (EIN) WE DO IT ALL! for a single low flat fee of $1,295.00 (plus the applicable Federal and State filing fees) *IF YOU DON'T NEED AN ATTORNEY'S ADVICE...* DON'T PAY AN ATTORNEY'S PRICE! Click To View Attorney Alternative's New Advertisement: (Windows) (Mac) The President of Attorney Alternative, Thomas A. Hicks, JD, graduated Law School with honors, and is a noted lecturer on the procedures and regulations involved in setting up a 501c3 Tax-Exempt Nonprofit corporations NATIONWIDE! He has presented his educational seminar titled: "Why and Why Not to Start a Nonprofit" to Volunteer Centers and numerous other civic, educational and community groups in the Southern California area. The following is some basic information regarding a 501c3 Nonprofit Corporation. If you have further questions, contact us and we’ll be glad to give you more – more service, more information, more time to concentrate on your business and less time worrying the paperwork! What is a Nonprofit Corporation? State laws distinguish between General, For-Profit (stock) corporations and nonprofit (nonstock) corporations. In a For-Profit corporation, shareholders are authorized to receive stock in exchange for capital investments in the corporation. This capital investment often takes the form of money, equipment, or some other property. Shareholders in a For-Profit corporation only receive a return on their investment when dividends are declared and paid. A Nonprofit corporation, however, can not issue shares and cannot pay dividends. In addition, under the Internal Revenue Code (IRC) Section 501(c)(3), a tax-exempt corporation cannot pay dividends AND, upon dissolution, must distribute its remaining assets to another nonprofit group. *Advantages of Nonprofits* Tax Exemptions Under Internal Revenue Code Section 501(c)(3) a non-profit corporation is eligible for certain federal and State tax exemptions. With income tax rates as high as 34% on corporate income over $75,000, tax exemption status can be invaluable. Receiving Public Funds Many organizations are required by law to donate a certain percentage of their funds to non-profit organizations or risk endangering their own tax-exempt status. In addition, many exemptions exist for property transferred at death to a non-profit organization. Also, there are public foundations, philanthropic organizations and corporate grant-makers that provide funding for tax-exempt organizations. But, be aware that virtually any donor or sponsor thinking of funding your operation will insist on your organization having already obtained a 501(c)(3) number before they will consider donating. Limited Liability for Members and Directors As with a General, for-profit corporation, directors, trustees, and officers of non-profit corporations are usually afforded the same limited liability status. Thus, creditors of the nonprofit corporation can only reach as far as the corporation's assets to satisfy corporate debts and not the personal assets of the people involved in the nonprofit corporation. Exceptions to the Limited Liability Rule Personal Guarantees Where a corporation has not yet established a credit rating, banks and other creditors will often require a personal guarantee from corporate directors before extending credit. Thus, the individuals will be liable for the debt if the corporation defaults on its obligation. Tax Obligations State and federal governments have the power to hold corporate officers and directors personally liable for reporting and payment of taxes. Although your nonprofit corporation should be tax exempt from certain taxes, your corporation may still be required to file informational returns and annual reports to the state and federal governments...and don't forget about employee withholding taxes. Violation of Statutory Duties Corporate officers and directors have a statutory duty to act responsibly when engaging in corporate activities. Thus, if an individual acts grossly irresponsibly, he or she may be held personally liable for his or her actions Separate and Perpetual Existence A nonprofit corporation, like a for-profit corporation, is an entity with a perpetual existence that may outlive all of its founders. In addition, the corporation can act like an individual in that it can enter contracts, incur debt, own property and it can sue and be sued. Employee Benefits The principle of a nonprofit corporation can be employed by the corporation. As such, these employees can be eligible for fringe benefits not available to self-employed people. Examples of these benefits include, sick pay, group life insurance, accident and health insurance, and corporate pension plans. Other Advantages: • Nonprofit corporations under 501(c)(3) receive lower postal rates on bulk mail • many organizations offer discounted advertising rates to nonprofit entities • many internet service providers offer discounted rates to nonprofit corporations • many national chains (Costco, for example) offer lower membership rates • nonprofit corporate employees may qualify for job-training and other work-study programs subsidized by the federal government. Back to Top *Disadvantages of a Nonprofit Corporation* Paperwork Articles of Incorporation, Bylaws, and Minutes Articles of Incorporation must be prepared and filed with the Secretary of State in California. In addition, Bylaws must be prepared, minutes must be maintained, and certain federal and state tax exemption filings must be timely filed to attain a tax-exempt status. *We'll make it easy. Attorney Alternative will prepare and file your Nonprofit Articles of Incorporation in California. In addition, and unlike almost everyone else out there, we will prepare your 501c3 Federal and State Exemption Applications too! Federal & State Tax Filings What forms must be completed for tax exemption? On the Federal level, IRS form 1023 plus a number of attachments must be completed to qualify for 501(c)(3) Federal Tax Exempt status. Although certain groups like churches are NOT required to file Form 1023, it is recommended that these exempt organizations nonetheless submit the filing to ensure that the IRS views the organization as a tax exempt entity. Only after a corporation is approved by the IRS as a 501c3 Tax Exempt Organization can it rest assured that it is in fact a tax-exempt entity. Back to Top Nonprofit 501(c)(3) Corporation FAQ's* When must form 1023 be filed? IRS form 1023 must be filed within 15 months of the date your articles of incorporation were filed. If your filing is timely, the tax-exemption will be retroactive and will apply to the date your articles of incorporation were filed. How Many Directors Must My 501c3 Nonprofit Corporation Have? The State of California requires only one director for a valid nonprofit corporation. However, in considering your application for 501c3 tax-exempt status, the IRS typically likes to see at least 3 directors, the majority of whom are not related by birth or marriage. For example, if you have 3 directors, but two are husband and wife, the “49% rule” says that you must have a majority of directors that are not related. Therefore, if a husband and wife want to be directors, you need 3 additional directors (total of 5) to adhere to the “disinterested persons” rule for directors of nonprofits. For What Purposes May a 501c3 Nonprofit Corporation be Formed? Under IRS Code 501(c)(3) a Nonprofit corporation may be formed to operate for a religious, charitable, educational, literary, or scientific purpose. These five purposes are included as purposes accepted by California as well as valid Nonprofit corporate purposes. What are some of the limitations imposed upon a501c3 Nonprofit Corporation? A 501c3 nonprofit corporation must observe the following limitations: • Pursuit of the following “exempt” purposes only: Charitable, educational, religious, literary, or scientific purposes. • No distribution of financial gains to directors, officers or members. • Corporate assets may only be distributed to another tax exempt organization upon dissolution of the nonprofit corporation. • Participation in political campaigns for or against persons running for public office is prohibited. • Substantial engagement in legislative political activities is forbidden • The activities of the corporation must be carefully monitored to avoid triggering “unrelated business taxable income” (UBTI) (You need to be very careful about this issue when considering the type and frequency of your fundraising efforts! The advice of an expert is a good idea here!) *Want to get started as a 501(c)(3) Nonprofit Corporation TODAY?* Then contact ATTORNEY ALTERNATIVE TODAY, and let us take the hassle out of getting you set up and headed towards realizing your dream… Attorney Alternative 16162 Beach Blvd., Suite 207 Huntington Beach, CA 92647 TOLL FREE: 1-866-4NOLAWYERS (1-866-466-5299) E-mail: Click Here Back to Top Click on the following links for more information on our professional Paralegal and Mediation services: Legal Document Assistant Services Mediation Divorce Bankruptcy Living Trusts Incorporations Nonprofit 501c3 Corporations Core Values Back to Top
		DISCLAIMER: Attorney Alternative, Inc. is a Legal Document Preparation, Mediation and Alternative Dispute Resolution corporation, OC LDA license #110. Our Mediators are Certified Mediators in the State of California. Attorney Alternative, Inc. is licensed, registered and bonded as a Legal Document Assistant as required under California Business & Professions Code Sections 6400 et. seq. Attorney Alternative, Inc., its officers, directors and employees ARE NOT LAWYERS and cannot and do not provide you legal advice, nor do they represent you in court. The information contained on this site can be found in most legal self-help books and on many other web sites, and you should not construe this information as legal advice in any manner whatsoever. Please consult an attorney for any legal advice and remedies you may need. Copyright © 1994-2006 by Attorney Alternative, Inc. - All Rights Reserved