A Certificate of Incorporation may indicate that the company is not for profit. However, non-profit tax status is granted by the U.S. Internal Revenue Service (IRS) and additional steps must be taken to ensure IRS approval. Form a NON-STOCK, NON-PROFIT corporation, then apply to the IRS for recognition as a non-profit in order to achieve this tax status.
The same minimum costs apply to forming a non-profit corporation.
It is extremely important to include language in the corporation's purpose which indicates that it is organized for charitable or other acceptable purposes in order to qualify under the IRS rules. The purpose also cites the particular IRS section under which the corporation will qualify (such as section 501 (c) (3) ), and designates how the corporation's assets will be distributed should it dissolve. The Certificate of Incorporation must be prepared by an attorney or an accountant because of the special requirements of the IRS to gain tax exempt status. Once you have obtained the certificate, send or fax it to us for filing.
If the corporation's purpose does not meet the requirements of the IRS, it may be necessary to file an amendment in order to obtain the tax exempt status. For this reason, we cannot assist you with drafting the purpose and special provisions. Corp1, Inc. strongly suggests you seek the advice of an attorney or accountant before beginning this process.