Pictures from Virginia Homeschool Convention

I was excited to be invited as a speaker to the Home Educators Association of Virginia (HEAV) 2009 convention. I spoke on leading a homeschool group, having a family budget, micro business for teenagers, 501c3 tax exempt status and being a WAHM (Work at Home Mom).  I also talked to dozens of homeschool leaders, parents and teenagers that stopped by my booth.

My booth to meet and greet homeschool leaders from Virginia, Maryland, West Virginia and surrounding states.

My booth helper, friend, co-op member and fellow WAHM (Work at Home Mom), Katy Daum (tall one on the left) and me in front of our booth.

At the Leaders lunch with Exhibit Hall Coordinator, Tammy Bear (left), an extraordinary, organized, lovely lady!

I met my virtual friend, Janice Campbell (right) of Everyday Education, in person. She had a lovely booth.

The Exhibit Hall at HEAV. I was also pleased that Paul Suarez from The Old Schoolhouse (the next aisle over) stopped by my booth.

What a great weekend.  I enjoyed meeting so many homeschool parents, teenagers and leaders.

Carol Topp, CPA

New Ebook: Paying Workers in a Homeschool Organization

My friends, Kristen & Denise, at Homeschool Group Leader are giving away a copy of my newest ebook:

Paying Workers in a Homeschool Organization.

(I don’t even have this up on my website yet, so you are really getting first grabs!)

I get asked a lot about paying teachers, administrators and volunteers by homeschool leaders. I think this 17 page ebook will answer a lot of questions.

To get your free copy, leave a comment on Homeschool group Leaders Facebook page here:  Homeschool Group Leader Facebook page

All you have to do to get your free copy is two simple things by the end of June:
1. JOIN our Facebook group and POST a comment or an answer or ask your own question on it: I Am a Homeschool Group Leader
2. Then, BECOME a fan of our Facebook page, Homeschool Group Leader

Become a fan and you’ll be e-mailed the book within 48 hours.

This offer is only good until the end of June.

Kristen & Denise have big hearts and desire to help homeschool group leaders. They have big plans for offering support, so become a fan and learn what they are offering and connect with other homeschool leaders.

Carol Topp, CPA

Getting an EIN (Employer Identification Number)

Hi Carol,

I am new to an existing homeschool co-op in VA. This co-op is more than 12-15 years old. We do not accept donations or need to; so far we have been handling the money through someone’s personal bank account. We receive fees from students and then pay teachers and reimburse them for materials, generally we break even each year (or can if we need to). There are regular Board meetings; I do not know if they have bylaws or take minutes but I do know they have a mission statement. The bottom line is that we want to be able to have a business checking account.

Can we get an EIN in order to open a checking account in our co-op name without incorporating and without having a state or federal annual filing requirement? I seem to remember that once you get an EIN (that I think is required for a business bank account), you are on the radar screen with the IRS and will need to file some sort of return.

Thanks so much

Nancy V in VA

Nancy,

Usually the first contact a homeschool organization has with the IRS is getting an Employer Identification Number (EIN). Most banks now request an EIN when a group opens a checking account. Your group is doing things right by getting a checking account for their co-op instead of using a personal account.

On my website, www.HomeschoolCPA.com you can read my article Getting an EIN from the IRS.

Yes, you can get an EIN for banking purposes, but not have any other dealings with the IRS. You do not have to be a nonprofit corporation to obtain an EIN. If your organization does incorporate later, they will need to apply for a new EIN.

You will deal with the IRS if you become a 501(c)(3) tax exempt organization or pay workers. Since you mentioned that you are paying teachers, then you have required reporting to the IRS and to your state. You will have to pay payroll taxes (Social Security and Medicare) and file a W-2 if they are employees or file a 1099MISC if they are independent contractors. You should read this entry: “Paying co-op teachers is a sticky issue.”

Best of success to you!

Carol Topp, CPA

Off to Home Educators Assoc of Virginia (HEAV) Convention

For the next few days I will be at the Home Educators Assoc of Virginia (HEAV) Convention in Richmond, VA.

They have a pretty busy schedule for me. I’ll be giving workshops on:

• Budget Is a Dirty Word: Money Management for Those Who Hate to Manage Money
• Wanna Be a WAHM? The Pitfalls and Possibilities of Being a Work at Home Mom
• Small Business for Teenagers
• Is Your Homeschool Group Ready for the Next Step? Becoming a 501c3 Tax-Exempt Organization
• How to Start and Manage a Homeschool Organization: Boards, Budgets, and Bylaws

(see full descriptions of the workshops here and get the handouts here)

I’ll also be attending the homeschool leaders lunch and I am serving on a Q&A panel for leaders. I hope to meet some of you.

If you’ll be at HEAV, come by my booth #237 or to a workshop and say hello!

Carol Topp, CPA

Carnival of Homeschooling

The latest Carnival of Homeschooling is up at Principled Discovery.  She has chosen a field guide  to homeschoolers as her theme “to attempt to describe this fascinating specimen of educational freedom and gain a greater understanding of its habits, habitat and daily life.”  Very clever and lots of good posts on homeschooling.

My post on insurance for homeschool groups is there.

Carol Topp, CPA

Checking accounts and EINs for homeschool groups

Carol,

We have always had a checking account under a parent’s name. We were adding a name to our account this year when (the bank) informed us we can no longer do this and we need to have our own Tax ID number. Will we need to file returns with the IRS if we get a tax ID number?

I strongly discourage using a parent’s name on an organization’s checking account. The organization should have a checking account in its own name and use an Employer Identification Number (EIN), not an individual’s social security number.

Getting an EIN from the IRS does not necessarily mean your organization will have to report income to the IRS. If you are a small nonprofit organization with annual gross revenues under $5,000, there are usually no reporting requirements to the IRS at all.

Nonprofits have to start filing tax forms when they

• bring in more than $5,000 a year
• become a 501(c)(3) tax exempt organization
• do public solicitations (i.e. door-to-door selling or fund raising)
• pay workers either as employees or independent contractors

If you hire and pay workers, your organization will use the EIN to file either 1099MISC or W-2 forms for each worker.

Read more about hiring and paying workers in my ebook, Money Management for Homeschool Organizations here

Carol Topp, CPA