IRS threatens to deny 501c3 status to homeschool group

UPDATE: The IRS sent the homeschool group their 501c3 tax determination latter on July 19, 2021! Victory! Read more to learn what HomeschoolCPA wrote to the IRS to change their mind.

It’s my worst nightmare: The IRS denying one of my homeschool clients 501c3 status.

As a CPA who has helped over 200 homeschool organizations apply for 501c3 tax exempt status over the past 20 years, I have never had a client be denied tax exempt status by the IRS. Until May 2021.

An IRS employee is considering denying 501c3 status to my client, a small homeschool co-op in California. She is claiming that this group of 35 families is only serving themselves and not serving a “public interest.”

This could set a very bad precedent if homeschool nonprofits are denied 501c3 tax exempt status.

While on a phone call with the IRS specialist, I explained that homeschool groups are a lot like private schools, offering classes, etc and that some private schools are smaller than 35 families.

She said,
“Yes, but you homeschoolers want a tax break.”

IRS Exempt Organization employee on phone call on May 17, 2021

Wait! What? Did I hear her correctly? I informed the IRS that there are no federal tax breaks for homeschool families.

She then went on to explain that I needed to read Rev Ruling 69-175 because that is her basis for denying 501c3 tax exempt status to a homeschool group.

I contacted HSLDA and CHEA of California for their assistance. Then I got to work researching, reading, studying and writing. I had four attorneys and three other experts in nonprofit tax exempt status read my document.

I faxed the IRS a 5-page document with facts and details how a homeschool co-op is broadly serving the community and not just private interests. I also explained why Rev Rul 69-175 does not apply to this client’s situation.

As of June 17, 2021 we have not received the IRS determination.

I’ll update this post when we hear back.


I’d like to ask for prayers for clarity of thinking for the IRS and a favorable reply for this homeschool co-op and all homeschool groups applying for 501c3 tax exempt status.

Carol Topp, CPA
HomeschoolCPA.com
Helping Homeschool Leaders

What to do about a controlling and narcissist leader

The leader of our co-op refers to the co-op as “her group to protect.” She has surrounded herself with a board who supports her fully and does her bidding without question. The difficulty is, when questioned about decisions she has made by co-op members, this leader has  told co-op members that the board makes decisions and that the way things are run are none of their (the co-op member’s) business. She is a very capable in many areas, however she is controlling and many times unkind.

Unfortunately, the board members are blind to all of this. They support her fully. Co-op moms are afraid to confront this leader for fear of the consequences. She is sweet to those who support her and speaks poorly/holds a grudge against those who conflict with her. 

My question is what can we do? Because our co-op is not under the authority of a church, there were no pastors, counselors, or elders to help resolve the conflict. Is it common for co-op boards to have some sort of outside oversight to help with internal conflict resolution?

This is such a great group of women, but I fear that even a loving confrontation with this leader would cause a split in the group. I do not want to “take down” this leader.  —

I appreciate any advice or counsel you can give. Thank you.

Elizabeth

Elizabeth,

I’m sorry to hear about the narcissistic and over-controlling leader you have. Unfortunately, there is not much oversight of nonprofit boards, unless they are doing something criminal. Then you report them to your state’s attorney general.

The group should have bylaws. Try to get your hands on a copy of the bylaws. Perhaps you could see where she is in violation of the bylaws and start there. I would recommend that you gather a small team and then a group of you approach a current board member with your concerns.

Don’t go it alone. Be very specific. List dates and specific examples of how the bylaws are violated. Ask for a current board member to request changes to the bylaws such as term limits on all officers. That’s a start.

It may not work because your leader sounds like a narcissist to me. Over-controlling and narcissistic leaders don’t listen to anyone.

Narcissistic leaders

I’ve been reading a lot about narcissism lately. Here’s an article that explains the characteristics of a narcissist leader. So-Called “Strong” Leaders

Almost all the experts like psychologist DorctorRammani on YouTube say that a lot of leaders (like your board members who do whatever the leaders wants) do not recognize narcissism or its dangers. They advise that the best approach is to stay away from the narcissist.

Your only choice may be to leave. That may be the only way to protect yourself from emotional harm. But be sure to speak privately with a board member (but not the narcissist leader) first so they know your reasons for leaving.

Be prepared to be gas-lighted (where they make you out to be the bad guy!) or slandered (trying to damage your reputation) or gossiped about or be called “a hater,” or “divisive” etc. Unfortunately, some narcissists can get nasty when they feel threatened.

Take care!

Carol Topp, CPA
HomeschoolCPA.com
Helping Homeschool Leaders

Do we have to file as a non-profit to be an official homeschool co-op?

We are a group of families that came together last year to work collectively in sharing the role of teaching each other’s children one day a week. We have lots of interested families that want to join us next year. I’m thinking Co-Op is the way to go, but I’m still not sure of the road ahead.

Do we have to file as a non-profit to be an official Co-Op?



Well, I’m not sure what you mean by “official homeschool co-op.”

Perhaps you mean an “official” nonprofit organization.

As soon as you have a board, mission, and bylaws your organization IS a nonprofit organization!

It is an unincorporated association, but it is still a nonprofit organization. There is usually nothing to file at the state level to create an unincorporated association. The filing starts (at the state level) when you chose to be come a nonprofit corporation, as many co-ops do.

There is no such thing as an “official co-op.” The homeschool classes that you call “a co-op” are the main program or activity that your nonprofit organization operates. The nonprofit organization may also offer other activities such as parties, clubs, field trips, etc.

This blog post explains what an unincorporated association is: My Homeschool Group is an Unincorporated Association. What Does That Even Mean?

I think my Homeschool Co-ops book would be most helpful at this point.

Or my webinar on Create a Nonprofit for your Homeschool Community would be helpful at this stage as well.

If you still have questions (and you probably will!) I would be happy to arrange a phone consultation with you. I charge $85/hour for a consultation with a nonprofit organizations. $60 minimum. Contact me.

Carol Topp, CPA
HomeschoolCPA.com
Helping Homeschool Leaders

Handing out gift cards? Here’s how to record them

Vicki Boatright is a bookkeeper for churches (and other nonprofits). I have found her blog posts at Free Church Accounting and ebooks very helpful as I advise homeschool groups.

Gift cards as thank you gifts


In a blog post on FreeChurchAccounting.com, Vicki explains how to record gift cards that your organization may be buying and then passing out as gifts to volunteers or as benevolent gifts to a needy family.

Gift Cards: Were any gift cards purchased for staff, gifts/prizes, or benevolence? Those have to be “tracked”! We try to watch and catch them as soon as the church purchases them, so we can set up as a “cash on hand” account  in their accounting system. We then have to manually enter the “expense” each time a card is used or given away.

Lisa London, has a great article on how to handle gift cards on her “accountant beside you” site and provides a free log that you can use to track those gift cards! 

So in your homeschool group, you probably buy some gift cards to hand out as thank you gifts at the end of the year. You enter these purchases of gift cards as “Appreciation expense” probably as a General and Administrative expense in your bookkeeping.

If you purchase a stack of gift cards and don’t give them all away right away, then they need to be recorded as an asset just like cash in the bank. This could be called a “gift cards on hand” asset account. That’s what Vicki is talking about in her blog post I quoted above.

For more information on money management in a homeschool organization purchase my book Money Management in a Homeschool Organization.


Gift cards to a needy family


If you are helping needy families with gift cards, I condemned you! But be sure that you have clearly stated in your Articles of Incorporation, bylaws and IRS 501c3 Application that you have a charitable purpose as well as a educational purpose. You see, helping a needy family with a gift card is not in accordance with an educational purpose; it is a charitable act.

If your organizational documents and your IRS application only states your group has a educational purpose than you must stick to educational discounts to help a needy family.

Read this story of a homeschool group that I had to advise to stop their charitable activities. I didn’t like telling them that, but I didn’t want them to get in trouble with the IRS!

Can a homeschool group be charitable? Maybe not!

Carol Topp, CPA

HomeschoolCPA.com

Classical Conversations knowingly exposes churches to tax liabilities

(Photo Courtesy of JJ Veale

Classical Conversations, Inc. (TM), Inc. has been the subject of two investigative reports written by Josh Shepherd in 2021.

I was interviewed by Josh and quoted in the first article Whistleblowers Say Classical Conversations is Multi-Level Marketing Scheme that Exploits Homeschooling Parents.

I shared some background information in my blog post Does Classical Conversations Exploit Homeschooling Parents?

The second article titled “Classical Conversations Knowingly Exposes Unsuspecting Churches to Tax Liabilities, Sources Say” was released last week.

It reveals that in addition to exploiting homeschool parents, Classical Conversations knowingly and deliberately has been exposing churches to property tax liabilities.

Background


I first became aware of the problems with Classical Conversations “communities” (they are really businesses owned by a licensed CC Director) in 2017 when a CC Director in Illinois emailed me. She was having difficulty finding a church to host her CC business (what she called “a community”).

I replied to her question and explained the churches were concerned about their property tax exemption.
I thought Illinois was a particularly stringent state and did not think this was a wide spread problem. I was wrong. Very wrong!


Then in 2018 I heard from a CC Director in WA State having the same problem.

I started to realize that CC meeting in churches could be a problem in many states!

After hours of research, calling tax assessors and helping scores of CC Directors, Jamie Buckland of Classical Homeschool Consultant has determined that 47 states have restrictions on for-profit businesses using tax exempt property of churches. Only KY, TX and OK seem to not care much about for-profit use of a property-tax-exempt church building.

In April 2019, a pastor emailed me and explained he has received an anonymous letter with links to my website. This was the first time I’d heard of this letter.

I gave him a lengthy reply.

Then it all exploded!

Letters to churches expose the truth

Robert Bortins CEO of Classical Conversations, Inc. hosted a webinar for CC directors to discuss their opinion on CC “Communities” meeting in churches. The webinar was transcribed by one of the attendees and sent to me.

We also found out that the letter originated in Cincinnati, Ohio, …
Um, one of the accountants that they linked to in their letter lives in that state as well and so we followed up with that CPA to find out if we could discuss this matter with them, you know, as Christians are called to do and also offered to let her speak with our legal counsel so that she could gain a more full view of the matter that was referenced in the letter and that was referenced on her website. Unfortunately, she declined such an invitation. And so of course, that was sad to hear because we wanted to make sure she was well-informed of the laws as well.

Robert Bortins, transcript of “Q and A with Robert Bortins” webinar April 17, 2019

He implied I had sent the letters.

I didn’t. Why would I? I had already posted two blog posts that the letter referenced years earlier.

Robert Bortins came very close to committing slander against me during that webinar. I believe Robert Bortins did commit slander and libel against me in private conversations and tried to ruin my reputation and my business based on social media posts shared with me.

slander: the action or crime of making a false spoken statement damaging to a person’s reputation; make false and damaging statements about someone.


I did not send the letters. I do not know who sent the letters. I had no involvement in these letters sent to churches.

Nasty emails came my way like this one:

Because of you, my community has no place to meet. We are moms sacrificing a lot to live off of single incomes to stay home full time with our kids. I hope the money was worth it to you because obviously you don’t care about the people you’re speaking to. Such a stereotypical accountant. Actually, much nastier than any accountant I’ve met. 

Noelle, an angry CC mother

I visited an attorney and she advised me to reply individually to emails which is what I did. She also reminded me that I did not need to speak to CC’s legal counsel to “gain a more full view of the matter” or “be informed on the laws” by CC, Inc. or their legal team. If I need legal counsel, she would provide it to me or recommend another legal expert on property tax law.


FAQ on Churches and CC

In an attempt to get clear information to homeschool groups, CC Directors and churches I wrote a FAQ page. It was referenced in the article on The Roys Report.

And I wrote a a follow up blog post Tax Assessor Clears Confusion on CC Communities Using Churches that was also referenced in the investigative report by Josh Shepherd.


My real concern is for the churches who were innocently or ignorantly (or perhaps deliberately) deceived by CC Directors. The Directors hid the fact that they were business operating in a church.

Some were ignorant of why they were instructed by CC, Inc. to tell a church host “We’re just a bunch of homeschool moms” or “we’re a Christian homeschool program.”

CC Directors, as instructed by CC, Inc., hid the fact that they were businesses operating in a church. Some Directors had the gall to ask for free rent for their “community” (remember it’s really their business) too!

There is a saying that a whole truth told as a half truth is a whole lie!

Yes, CC communities are “a bunch of homeschool moms.” That’s a half truth told as a whole truth. The half omitted is that the CC “community” is a BUSINESS!

The local CC Director may not have understood the difference prior to 2019, but CC, Inc. has understood the difference since at least 2016, probably much earlier! In fact, they sent a cease and desist letter in June 2016 threatening financial damages to a CC mom, April Palmer (as mentioned in the article), who told ten local churches that the CC communities they were hosting were profit businesses.

A homeschool mom tells ten local churches the truth and CC Inc. threatened her with a lawsuit.

Why?

Telling the licensed Directors and churches the truth would damage their business model which depends on churches not knowing the truth that CC “communities” are businesses owned by each Director. It’s crass to say, but it’s all about the money to CC Inc.


My concerns for churches and homeschool groups

I am concerned for churches potentially facing property taxes like the two mentioned in the article and perhaps unrelated business income tax because they believed they were hosting a legitimate nonprofit homeschool program.

And I am concerned that all homeschool groups may be viewed suspiciously by churches. This can make it harder for the legitimate, honest nonprofit homeschool groups to find church hosts (post COVID). I’ve been told of churches now asking homeschool groups for IRS 501c3 determination letters to prove the group is a nonprofit organization.

Shame on CC Inc. for making churches suspicious of all homeschoolers.

Shame on CC Inc. for putting churches at potential risk of incurring property tax.

Shame on CC Inc. for duping your own customers (i.e., licensed Directors), by not explaining the full truth to them, exposing them to potential liability (owing payment of a property tax bill to the church).

And shame on CC Inc. for not changing their business model back in 2016 (or earlier) and instead continuing to reap large financial rewards while putting all the risk and liability on CC Directors and churches.



Carol Topp, CPA
HomeschoolCPA.com
Helping Homeschool Leaders

Convert your homeschool group to a nonprofit corporation and keep your EIN!

We started as a homeschool group in 1998. I don’t think any bylaws or articles of incorporation were ever filed. So we were just an unincorporated association, as I leaned from reading your books. We are now adding classes to our program and want to move through the process of filing to be tax exempt as a 501c3. We will file Articles of Incorporation to re-form as a nonprofit corporation.

Should I file for a new EIN or just use the current one?

Lisa in California

Lisa,

Lisa’s homeschool group was an unincorporated nonprofit organization that now wants the benefits of limited liability for her members and board that nonprofit incorporation offers.

For years I told small homeschool groups:


“If you decide to incorporate as a nonprofit corporation in your state, then you must get a new Employer Identification Number (EIN) because you have formed a new, legal entity. It’s like a new baby was born and that new baby needs a new Social Security Number.

But now the IRS lets nonprofit organizations keep their EIN if they are just converting from an unincorporated association to a nonprofit corporation and not changing their “business structure,” meaning you were operating as a nonprofit organization (with a board, bylaws and a nonprofit purpose) and will continue to do so.

To use my baby and Social Security Number analogy: it’s like Lisa’s baby decided to grow up. It looks different now, but it is the same child and can keep its original Social Security Number. Lisa’s homeschool group “grew up,” but is still the same organization. It can convert to a nonprofit corporation and still keep it’s original EIN with the IRS.

The IRS website says:

“You will not be required to obtain a new EIN if any of the following statements are true….
Conversion at the state level (to be a corporation) with business structure remaining unchanged.”

Source: IRS.gov Do you need a new EIN.

So, you don’t need a new EIN if your unincorporated association converts to be a nonprofit corporation! That’s saves a lot of hassle!

But if your homeschool group is a for-profit business, owned by someone, like a Classical Conversations Community owned by the CC Director, then the business structure has changed and you’ll need a new EIN for the new nonprofit corporation.


My book The IRS and Your Homeschool Organization: Tax exempt Status for Homeschool Organizations will be very helpful as you apply for 501c3 tax exempt status.

If you have questions about nonprofit incorporation, 501c3 tax exempt status, or running your homeschool group, contact me.

Carol Topp, CPA
HomeschoolCPA.com
Helping Homeschool Leaders

Does Classical Conversations exploit homeschool parents?

Classical Conservations Inc. CEO Robert Bortins Jr. addressed thousands of homeschooling families in a simulcast broadcast from Albemarle, North Carolina on October 18, 2017, . (Image: Screenshot / YouTube)

Josh Shepherd an investigative journalist, has been researching the business practices of Classical Conversations for several months.

He released an article on the Roys Report titled “Whistleblowers Say Classical Conversations is Multi-Level Marketing Scheme that Exploits Homeschooling Parents” at https://julieroys.com/does-classical-conversations-exploit-homeschooling-parents/

It’s an interesting, eye-opening, and thought provoking articles. I was interviewed by Josh Shepherd for the article and I am quoted in it several times because I have had so many conversations and business consultations with CC Directors in the past few years.

Background on Classical Conversations’ business model

Classical Conversations is a unique homeschool business. It offers curriculum to homeschool families and once -a-week “communities” where “tutors” display to the students and parents how to implement the curriculum in their homeschool. The “communities” have the feel of a nonprofit homeschool co-op, but the “communities” are almost always for-profit businesses owned and operated by each Director. Each Director agrees to a licensing agreement with Classical Conversations Inc. that is similar to a franchise agreement. Each Director sends a significant portion of her income back (averages about 15%) to CC Inc. as a licensee, much like a franchise operator does.

I became aware of the franchise-like business structure of CC, Inc. and its Directors around 2015. In 2017, I became more and more concerned as I spoke with many CC Directors at homeschool conventions and via email and found they were very confused. Many did not realize they had agreed to operate a business. Many had made significant mistakes on their tax returns. I began creating several blog posts on my HomeschoolCPA.com website to clear up their confusion.

My concern is now and always has been for the individual Directors because I care about homeschool group leaders. I want CC Directors to have the information they need to make a wise decision before they become CC Directors. I also want them to stay out of trouble with the IRS and state and local authorities.

Taxes for CC Directors ebook


As early as 2013 I offered more than once to write an ebook for CC Directors to a local CC Area Representative in Ohio. I never heard from CC Inc., so in the fall of 2017 I decided to write a book myself and help the poor, confused CC Directors I had been hearing from stay out of trouble with the IRS.

I told Robert Bortins, CC Inc. CEO at the 2017 HSLDA National Leaders Conference that I was writing a book titled Taxes for CC Directors and he thanked me for the support I gave to CC Directors.

In November 2018, I received an email and arranged a phone call with Keith Denton, COO of CC Inc. They wished to have distribution rights to the ebook. I thought that would work well, since I would find it difficult to reach CC Directors myself to tell them about the book. (I am not allowed to join Facebook groups for CC Directors since I am not a Director myself.) So I agreed. CC paid me $2,500 for the sole rights to distribute the ebook.

I sent Keith Denton my initial version of the book on Taxes for CC Directors in January 2019. After 1400+ corrections and additions by their attorney and two months later, CC added the 60 page ebook to their Directors Licensing Guide, a rather large online-only guide for licensed Directors.

Very shortly after (in August 2019) CC directors emailed me saying they could not access the ebook. Some people claim that CC bought the distribution rights and then “buried” the book. It made me wonder why they would pay for the rights and then not distribute it to each CC Director.


I rewrote the ebook after the major tax changes in 2019 and to appeal to a larger audience. I released it January 2020. It is now called Taxes for Homeschool Business Owners and available here.


CC Directors carry all the liability

My concern for CC Directors grew. I have concerns about the liability they take on when they agree to start a community and become a licensed Director for CC. They are responsible for:

  • Hiring workers (tutors) and correctly classifying them as employees, payroll processing and taxes, employee application and background checks
  • Building lease and rent, building safety and insurance, and potentially harming the church’s property tax exemption by operating a for-profit business on church property
  • Safety of children and all adults participating which includes physical safety, health and COVID precautions, and mandatory reporting of suspected abuse.
  • Daycare licensing if the community offers a nursery
  • Tax reporting including 1099-NEC or W-2 filings for workers and Schedules C and SE on their individual tax returns
  • Financial management including invoicing parents, record keeping, paying bills, etc.
  • Not using using volunteer labor or allowing Independent Contractors (i.e., tutors) or employees to volunteer
  • Business registration and licensing at the state and county level
  • Complying with all the requirements in the CC licensing agreement including operating the program, hosting information meetings, attending training sessions, etc.

That’s quite a long list of responsibilities and potential areas of liability for a CC Director.

How much does a CC Director actually make?

In the article Josh shared a chart of income and expenses from several CC Directors. The fee they must pay to CC Corp averages 23% of their total revenues. Most Directors paid 15% of their revenues to CC Corporate. The profit from all their efforts averaged $2,811 working about 20 hours a week for a school year. The profit ranged from a $5,772 loss to $12,603 profit.

I think this information will be helpful for potential CC Directors to examine and ask themselves if the potential profit is worth the hours that a Director must put in to operating a CC community.

Source: https://julieroys.com/does-classical-conversations-exploit-homeschooling-parents/
*Data supplied by Carol Topp, CPA. ^Director G used non-standard accrual accounting during the two years reported. The person recorded income over two semesters, yet had to pay all CC fees in the fall semester.

Many CC Directors tell me that they operate a community not to make a profit but to benefit their children with a classical education. I frequently hear, “I am a Director to help pay for my children’s tuition.” That’s very honorable, but that same purpose can be accomplished without taking on the financial, legal, and safety liabilities of running a CC program.

Almost all homeschool programs operate as nonprofit organizations with limited liability for their leaders and members. CC Communities are a noticeable exception. Nonprofit organizations also have a board or team of leaders to help carry the responsibility. CC Directors carry all the burdens alone since it is their business.

Is being a CC Director worth the liability?


Carol Topp, CPA
HomeschoolCPA.com
Helping Homeschool Leaders



Paying a homeschool leader to start business and benefit the homeschool group

We are a new unincorporated nonprofit association and our Director has applied to become a notary. Can we use our fundraising funds to cover the cost for her to become a notary?

She would be offering complimentary notary services to all our members. We would charging a fee for notary services for people who are not members of our homeschool group. What are the legal ramifications for this?

Thank you for your time and assistance!

TA in Illinois

Dear TA,

Thank you for contacting me.

Your homeschool group should not pay for the Director to become a notary. That’s like your homeschool group paying for someone to attend medical school if they promise to give free physical exams to all members. No! Okay, that’s an extreme example, but you get the idea. 🙂

Your homeschool organization’s purpose is educational, not to fund someone’s business.

Becoming a notary is a business expense for an individual and your nonprofit should not be paying personal, business expenses for an individual.

The IRS could see this as “inurement” which is when the assets of a nonprofit (the money from fundraising) flows to benefit an individual. Sometimes it’s better called “private benefit” or “self-dealing.” Inurement is strictly forbidden by the IRS and could cause your organization to lose its tax exempt status. That’s a pretty serious legal ramification!

Don’t pay for the leader’s personal expenses to become a notary with the nonprofit’s funds.

Additionally, making money by charging nonmembers for services that are not related to your purpose (education) is called Unrelated Business Income and is subject to income tax. So that’s a financial ramification on your Director’s idea.

I discuss unrelated business income and the tax here: What is Unrelated Business Income Tax?

And in this podcast episode:
What is Unrelated Business Income Tax or UBIT? (podcast)

I hope that helps!

Carol Topp, CPA
HomeschoolCPA.com
Helping homeschool leaders

Does my homeschool group have to be tax exempt?

Does my homeschool groups have to be tax exempt? It seems like a lot of work, cost and government intervention.

Many of our members and the board members don’t want to be a 501c3. Do we have to be? We just want to keep things simple.

-Homeschool leader

Dear homeschool leader,

No, your homeschool group doesn’t have to be tax exempt, but then it will owe taxes on any surplus it has each year. I understand the desire to keep things simple, but, trust me, filing a corporate tax return (Form 1120) tax return is NOT simple!

It’s also not as much work to apply for 501c3 tax exempt status you you are fearing, especially of your organization is small (revenues less than $50,000/year) and is eligible to file the shorter IRS Form 1023-EZ.

Here’s an explanation from my webinar on 501c3 Application for Homeschool Nonprofits


This webinar (90 minutes total length) will explain the benefits of tax exempt status, the application process and walk you through the application Form 1023-EZ line-by-line. At the end of the webinar you’ll be equipped to apply for tax exempt status by yourself.

Get more information on the webinar 501c3 Application for Homeschool Nonprofits

Carol Topp, CPA
HomeschoolCPA.com
Helping Homeschool Leaders

Tax and record keeping help for CC Directors

Carol,

I will be a director with Classical Conversations (TM) for the upcoming year and I wanted to keep track with all finances and stay on top of all the things for taxes but I am unsure of how to do that or find someone knowledgeable with something like Classical Conversations.

Would you be able to direct me in a better direction with things?

-Jillian M


Jillian,

Good for you to realize that directing a Classical Conversation program is a business and you need to be concerned about taxes and record keeping. Sadly, I have heard from many CC Directors that they had no idea they were running a business. Some have made terrible mistakes in their tax filings.

I have several resources for you:

Taxes for Homeschool Business Owners

The ebook is 60 pages long and contains information on

  • Business Start Up
  • LLC status
  • Tax Deductions
  • Tax Forms
  • Sample Tax Returns
  • Self Employment Tax
  • Paying Yourself
  • Paying Others
  • Businesses Using Churches
  • Should My Homeschool Program Be a Nonprofit?

Business Q&A for CC Directors: Answers You Need to Run Your CC Business

This 50 page ebook is a collections of questions CC Directors have asked the HomeschoolCPA, Carol Topp, CPA over the past few years. Carol answers each question and cover topics such as:

  • Business Set up: LLC status, nonprofit, ministry or business, checking accounts, record keeping
  • Relationship with your church-host: taxes for the church
  • Taxes: What forms to file, 1099-MISC, tax deductions
  • Employees: Independent Contractor or employee

I hosted a webinar on Tax Preparation for Homeschool Business Owners. It should be a lot of help to you as a CC Director. You can watch the recording at HomeschoolCPA.com/HSBIZTAXES for a small fee of $10.


Bookkeeping spreadsheet for CC Directors is a free download.

I hope that helps!


Carol Topp, CPA
HomeschoolCPA.com
Helping homeschool leaders