Hi-
We are in the process of moving toward becoming a 501c3 group but we don’t have enough financial history or the resources to accomplish it right now so we would like to do the intermediate step of becoming a corporation.
We are based in Pennsylvania but I’m not sure what type of corporation we should be, LLC or something else.
We would like to keep it as simple as possible so we can easily transition to a 501c3 down the road. What do you recommend?
Thanks for your help.
Delia in PA
Delia,
Your homeschool group sounds like many others that become a nonprofit corporation. Be sure you read my articles before filing for nonprofit corporation status
- How do we become a recognized nonprofit?
- Do we need to incorporate?
- Seven Great Reasons to Incorporate
There is some very specific language that the IRS will expect to see in your nonprofit paperwork (called your Articles of Incorporation) in order for you to receive 501c3 tax exempt status in the future.
See my sample Articles of Incorporation here: https://homeschoolcpa.com/leader-tools/sample-documents/
Don’t delay too long between becoming a nonprofit and filing for 501c3 status. The IRS expects you to file for 501c3 within 27 months of your date of formation (i.e. the date you became a nonprofit corporation)
As for being an LLC, it’s not very common for nonprofits. This blog post will help: https://homeschoolcpa.com/should-my-homeschool-group-file-as-an-llc/
I hope that helps!
Carol Topp, CPA