Dear swelp,
Actually, it's easier than you think. And just a little bit more complicated
than you want it to be - as with all tax things.
First thing you do, after you make sure the name isn't already being used,
is file with IRS for a Federal Identification Number.
You will use Form SS-4
http://www.irs.gov/pub/irs-pdf/fss4.pdf
Under type of entity, check the box for 'other non-profit organization'.
Where it says, 'specify', fill in 'association' or 'professional association'.
There are only a few pages of instructions, which include how to file the
form, so take a moment to read them:
http://www.irs.gov/pub/irs-pdf/iss4.pdf
You can read IRS's overview of the requirements to qualify here:
http://www.irs.gov/charities/article/0,,id=96099,00.html
Next, go to this site to learn everything you need to know about filling
out the IRS's application for non-profit status. There is a whole booklet
you'll need to fill out, called a Package 1023.
http://www.form1023help.com/
Sandy Deja, who operates that site, has provided some excellent links and
instructions to walk you through it. If you need help, she's well worth the
price as a consultant. (Typically, if you have someone prepare and file the
whole application for you, expect to pay $2,000 - $3,000. This IS a lot of
work in this.) But, if you can read and follow instructions, you should be
able to do it all yourself.
The one area where you really may need some professional help is how to
set up the by-laws properly for a membership organization. This is very
IMPORTANT. If you don't do it right, you could be voted out of office and
lose control of your own association. Spend the money to do this properly
and don't use 'boiler plate' (template) by-laws.
You're going to need to prepare budgets and write up business plan-type
information. If you need to help, you're in luck.
Non-profit organizations' tax returns and reports are all public information.
You can use the information from an existing association to help guide you.
You'll find their reports on GuideStar
http://www.guidestar.org/
OK, now, you've addressed the IRS. But you still need to file with your state.
I don't know what state you're in, so here are links to ALL the states'
tax agency websites. You can call your state's revenue office to get the
form number you'll need to file. It will generally use all the same information
you sent to IRS.
That should get you started. Essentially, you can do most of this yourself,
with just a couple of hours of professional input on the by-laws. It WILL
take hours to think through your business plan, prepare the reports and
gather the materials. So plan to devote about 20+ hours to this project.
Good luck.
Your TaxMama-ga
Search tips - experience. I knew where to look.
Google: 501(c)(3)
Google: "setting up a non-profit organization" |
Clarification of Answer by
taxmama-ga
on
09 Aug 2003 23:29 PDT
Dear swelp,
You can create and print fancy certificates any time you want.
You don't need to be incorporated. You can do it from your own,
self-employed business. All you need to do is to file a DBA saying
that you are using this name. (A Google search does not turn up anyone
using the name you've chosen. That's a good sign.)
Again, you must ensure that no one else is using it.
Then, you can collect fees and keep all the profits.
No problem.
I think the real issue you will have, which is a whole other question,
is how to get recognition as a professional association or organization.
You want those certificates to mean something.
For that, decide which professional group within the computer repair
industry you want to certify. For instance, do you want to certify
Microsoft professionals?
Go to them and make the arrangements with them to tailor your courses
to meet their standards. Train people to pass Microsoft's exams.
And you've got it.
I teach workshops for tax and accounting professionals all the time.
I don't form an association. I don't incorporate separately. I just
submit my information to IRS to get my courses, and my company
approved for continuing education certification. I arrange to get
someone else who's paid for the CPA certifications. And I file with
the Bar Association to get their approval.
So, first protect the name. Personally, I'd file a trademark in the field
of computer repair. Then, you are free to operate it using a DBA from your
present business. Or, again, this is a personal preference, I would incorporate
to protect my other assets in the event of lawsuits.
(Incorporating could mean any number of forms of business, which I will not
go into for this response.)
I do hope that gives you some direction and a way to get started.
Best wishes,
Your TaxMama-ga
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