A homeschool group leader contacted me recently. She ran a homeschool group that was established in Kentucky as a nonprofit corporation, but now operated from a location in Ohio (just across the Ohio River). She was wondering what she needed to do in Ohio to be compliant with any reports Ohio required.
It is pretty rare for a homeschool group to operate or exist in multiple states, but it can happen when a group is located near a state line.
I found some helpful information from Floyd Green a nonprofit CPA.
Operating in Different States
Nonprofit organizations can operate nationwide, even though they are legally registered in one specific state as a domestic entity. Generally, charities incorporate in the state either where their headquarters are located in or where the majority of their activities take place. As your 501c3 organization grows and evolves, a need to operate in more than one state might often arise.
If you decide to expand your operations outside your state, you must keep in mind that you will have to comply with each specific state’s requirements where you choose to conduct your programs. The federal/IRS part of the compliance standards will not change if operating in additional states.
To be recognized as operating in another state, your nonprofit must be actively conducting its tax exempt program(s) outside its state of domicile. For instance, if you have a transitional housing facility in Georgia and you open another transitional housing location in Florida, you will be considered as operating in two states. In this case, you would have to register your Florida branch as a foreign corporation (here term “foreign” means “outside the state of domicile”). In some states, however, you will be required to file a “Certificate of Authority” to transact business in a particular state.
Please note that once you are registered as a foreign entity in a particular state, you are then required to do annual filings and reporting in the second state of operations, in addition to the filings you must do in your home state.
If you need help knowing what reports your state requires, HomeschoolCPA has two resources to help you:
Webinar: IRS and State Filings. This 60 minute recorded webinar equips to file on your own the IRS Form 990-N and state forms saving you hundreds of dollars in professional fees. The cost of the webinar is $10.
Service: Research your state filings and reports and send you a customized letter for your organization. The cost for this service is $100.