California ArticlesCalifornia Incorporation
|
Become a California Non-Profit Corporation
Will your California business explicitly serve as
an educational, charitable organization such as a foundation, a
charity or other type of non-profit organization? Then you should
file as a California non-profit
corporation.
California non-profit
corporations are subject to the general
laws of corporations and in some cases it may also a public corporation.
Some associations, trade organizations are also eligible to become
non-profits. Basically a non-profit is any organization that will
not profit from the revenue of its business. Non-profits may still
earn revenue, but 100% of it must be used for the purpose of the
business, plus reasonable administration costs.
If you are eligible, there are many benefits to becoming a California
non-profit
corporation. California Non-profit
corporations are eligible
for state and federal income tax exemptions and receive both public and
private grants. As a corporation is it a separate legal
entity, thus limiting
liability for members. California non-profit principals can also be employees,
and as such are eligible for benefits including sick pay, group life insurance,
accident and health insurance, payment of medical expenses, etc. Corporate
bylaws and operating rules help promote the clear-cut delegation of authority
and can contribute to the smooth operation of your group as it grows.
California non-profit
corporations also receive discounts on postal rates
for third class bulk mailings, cheaper classified advertising rates, discounted
space to and free radio and television public service announcements (PSAs)
provided by local media outlets. Incorporated non-profits also more easily
attract donation attention as they project a more trustworthy and organized
image.
While incorporation has great advantages, as a non-profit
corporation your finances will be scrutinized. This is especially true if you accept
money from government grants or as a high profile charitable organization.
Be prepared to account for every penny spent and maintaining the goals
of your organization. The Internal Revenue Service also has a separate
set of guidelines and expectations from a non-profit
corporation. Make
sure you read up on when and how to file taxes or hire an accountant with
specific non-profit expertise to handle it. For instance you will need
to provide the IRS with 3 years of past financial data. If your California
organization is new you must give financial statements for the current
year and proposed budgets for the next two years, including a detailed
breakdown of revenue and expenses.
California non-profit
corporations may file their Articles
of Incorporation in the same fashion as regular C
and S class corporations, but will utilize
a different set of forms specifically for non-profit entity status. These
forms can be requested from the state of California, filed using an online
service provider or utilizing costlier legal representation. On top of
typical California incorporation fees, there will be an additional fee
to file your federal tax exemption application.
Most California non-profits are created to help people in need and by
incorporating you will be better equipped to service that need.
|
California Incorporators
TOP Online Incorporators
|
