Some homeschool groups that started as a for-profit business want to convert to a nonprofit organization. Most of these nonprofit organization also want 501c3 tax exempt status from the IRS as well.
In this 3-part podcast series Carol Topp, CPA has explained the basics of a nonprofit organization and how to form a nonprofit corporation. In this third episode Carol discusses 501c3 tax exempt status.
The first two episodes (#168 and 169) can be found at HomeschoolCPA.com/Podcast
Show Notes
In this episode, Carol will discuss:
- The benefits of tax exempt status
- The application process and Forms 1023-EZ and 1023.
- Time and cost to apply for 501c3 status
- A successor to a for-profit entity must use IRS Form 1023 (not the shorter 1023-EZ) to apply for 501c3 status.
Featured Product
This webinar recording on Creating a Nonprofit for Your Homeschool Community will be very helpful as you launch a homeschool group
This webinar recording is helpful for new nonprofits, existing homeschool groups especially if you’re unsure if your group is a nonprofit, or for a business wanting to convert to a nonprofit organization.
The webinar runs about 90 minutes and covers:
- The difference between a business and a nonprofit
- What are the advantages and disadvantages of being a nonprofit
- Forming a board: who can be one it, what do they do, etc.
- Creating bylaws
- Drafting a budget
- Setting up a bank account
- Forming a nonprofit corporation in your state
- The timeline to get this all done
- The expense to accomplish this
The cost is only $10!
For more information visit HomeschoolCPA.com/CreateNP
In the podcast I mentioned my book, The IRS and Your Homeschool Organization.
The IRS and Your Homeschool Organization
Does your homeschool group need to pay taxes? Could they avoid paying taxes by being a 501c3 tax exempt organization? Do you know the pros and cons of 501c3 status? Do you know what 501c3 status could mean for your homeschool group?
I have the answers for you in my book The IRS and Your Homeschool Organization. The information I share in my book has been helpful to homeschool support groups, co-ops, music and sports groups and will help you understand:
- The benefits of 501c3 status
- The disadvantages too!
- What it takes to make the IRS happy
- What your state requires
- Why your organization should consider becoming a nonprofit corporation
- What is the difference between nonprofit incorporation and tax exemption
- IRS requirements after you are tax exempt
