Non-Profit, Tax Exempt & 501(c)(3) Organizations
Macomb County Lawyers Understand Tax Exemption
Initially, forming a nonprofit corporation is very similar to forming a regular corporation. You must file articles of incorporation with the State government. But, unlike regular corporations, you must also complete federal & state applications for “tax exemption”. As seen in recent new coverage, the federal government (IRS) scrutinizes businesses very carefully before they will grant “non-profit” status.
The IRS application for non-profit [501(c)3)] is very long & complicated. It includes requirements for profit and loss statements, pro formas and other very specific legal and accounting information.
And, the work is not nearly done, even once you incorporate and secure tax-exempt status from the IRS. Internal legal matters (recruiting a board of directors, hiring staff, setting up financial structures, etc.) and external legal matters (such as registering with the state before you can fund-raise, securing any required licenses or permits, making withholding tax deposits, etc.) must be carefully attended to.
Plus, given the heightened scrutiny of nonprofits, you will also need to have an “ethics accountability program” in place (including policies regarding conflicts of interests, compensation, travel, whistle-blower protection, and more) – as well as a transparent accounting system.
After filing the initial paperwork, you are also required by law to create corporate bylaws, which lay out the operating rules for your nonprofit. And, you must elect at least 3 initial directors of your nonprofit and hold an organizational meeting of the board. Additionally, Michigan corporation law requires that you hold certain annual meetings, keep specific minute books and file reports annually.
At Lakeside Legal Services, we admire your commitment to contributing to the community, and your desire to make the world a better place. And we are here to assist you negotiate the complex and often confusing laws, rules, regulations and requirements that are imposed on non-profit (tax-exempt) 501(c)3 organizations by the State and Federal government, and the Internal Revenue Service.
We also understand that for a a new non-profit organization, every penny counts – so you need legal representation that is cost-effective and affordable.
Experienced business attorney Justin Vande Vrede would be honored to give you a free consultation to assist your non-profit organization. He will offer you knowledgeable, caring advice at cost-conscious and affordable rates, to ensure that you take the right steps to ensure your organization’s future.
For a FREE CONSULTATION with an experienced business law attorney, call Lakeside Legal Group today: 586-469-0900.
Lakside Legal Group is a full service Michigan law firm providing representation in Macomb County, Oakland County, Wayne County and St. Clair County, including: Mt. Clemens, Warren, Sterling Heights, Madison Heights, Eastepointe, Saint Clair Shores, Roseville, Shelby Township, Chesterfield Township, Macomb Township, Grosse Pointe Shores, Grosse Pointe Farms, Grosse Pointe, Clinton Township, Harrison Township, Utica, Romeo, New Baltimore, Algonac, Armada, Port Huron, Imlay City, Rochester, Troy, Hazel Park, Clawson, Bloomfield Hills, Birmingham, Pontiac, Beverly Hills, Oak Park, Detroit, Southfield and Royal Oak.