Dollars & Sense

Converting a Business to a Nonprofit: Tax Exempt Status


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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

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.
  •  

    In the podcast Carol mentioned her book, The IRS and Your Homeschool Organization. It will be very helpful as you apply for 501c3 tax exempt status.

     

    Featured Product

    Webinar recording on Creating a Nonprofit for Your Homeschool Community

    This webinar recording is helpful for both new nonprofits, or if you’re unsure if your group is a nonprofit, or for a business wanting to convert to a nonprofit.

    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
      •  

        The post Converting a Business to a Nonprofit: Tax Exempt Status appeared first on Ultimate Homeschool Podcast Network.

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        Dollars & SenseBy Carol Topp

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