Video instructions and help with filling out and completing Fill Form 2220 Organizations

Instructions and Help about Fill Form 2220 Organizations

Hi I'm Tim CEO founder of Apple software I've helped start a number of nonprofits and worked at a church for a number of years so I've gone through this startup process a bunch of times it's not as difficult as it seems when you do your first one it's challenging when you do the second one it's like oh I remember how to do all this stuff and after you've done a few of them you realize it if I just know the steps and the checklist then it's it's pretty easy to do all right so how to start a non-profit I think there's a lot of steps and there's a lot that you need to do and you ought to do it in a certain order when you're starting a non-profit so I think the first place to start this may be silly as it sounds is starting to think of a name a lot of times you'll think of a name or want to start a non-profit and then that name is already registered or there's no website that you can get with the name in it that kind of thing and so you can start to brainstorm the type of name that you want and then do domain check to see if the name is available you want to submit an application that has the name filled out if the names taken it gets spit back to you so a lot of times you'll want to check to see if this names available before you turn in your application that way it's just it's easy you know it's going to go through so you've got the name of the entity that you'd like to start the first thing is to kind of bring that name or that thing that nonprofit into existence so how you do that is with the secretary of state it's a state agency there's one in every state and you basically file what is called Articles of Incorporation with the Secretary of State essentially what you're doing is you're creating a corporation and then you're gonna make it nonprofit later but you form a corporation so these Articles of Incorporation its articles it's a one-page for the most part I think each each state may have its own regulations on this but it's a document in a state of California one-page document and it has very specific information that needs to be in the Articles of Incorporation things like your name and address but there's some specific language you have to use and so you can look up online and look for Articles of Incorporation templates you know that kind of thing and so you draft this thing and this one-page document has the name the address and some other specifics in it you go to the secretary of state and you turn it in they look up make sure the name is available assuming it is you give them their filing fee and then BOOM it's a corporation so now it exists they give you a stamped copy of your Articles of Incorporation you're going to need that later to do things like open a bank account and they give you a state ID number basically some cities won't have a Secretary of State office and so you'd want to reach out the either got a drive to an office that does exist or you can reach out to these companies who have an office across the street from the Secretary of State and that's what they do you ask them to walk it across the street for you so there's companies out there that do that once you have the corporation created then I you're really kind of on the track then to turning the corporation into a nonprofit entity it exists at the state at this point it's in the state's records you have an ID number it doesn't exist at the federal kind of land yet so you need an employer identification number or an EIN number and so you can do that on the internet there's there's forms that you can fill out and mail in there's also even an 800 number you can call the IRS dial through this thing give them the information and then you get your EIN number on the phone and then they'll email to you so it's super easy to get your EIN so at that point the entity exists with the federal government as well and the next step is to try and take this corporation and turn it into a tax-exempt corporation this is called filing a tax-exempt application with the IRS and the application is the form 10:23 which is available on the IRS website this application basically walks you through getting tax-exempt status the tax-exempt status a lot of times is interchangeable with 501c3 status if you go to the IRS website or google IRS form 10:23 you'll get a PDF document if you scroll the very bottom of that document the last page of the document is a 10:23 checklist and that basically includes everything that you need to complete in order to send in your application to then try and get tax-exempt status for your corporation tax exempt status basically means that your corporation doesn't have to pay taxes on its net income it does not exempt you from sales tax property tax all of the other kinds of taxes it is an exemption from income tax if you get this 501c3 status and then it also means that the donations made to this entity are tax-deductible so that means the donor can write those donations off as a deduction on their personal taxes separate from that is I got the income as a nonprofit and I didn't spend any money out of a net income I don't have to pay tax on that so that's I'm tax exempt and they get a