Question:Â How does an organization become tax-exempt?
Answer: To be recognized as exempt from federal income taxation, most organizations are required to apply for recognition of exemption. For section 501(c)(3) organizations, the law provides only limited exceptions to this requirement. Applying for recognition of exemption results in formal IRS recognition of an organization’s status, and may be preferable for that reason.
Richard Keyt, JD, is a seasoned attorney with over 30 years of experience in nonprofit law. As a founding partner of KEYTLaw, LLC, Richard is passionate about helping individuals and organizations establish successful nonprofit entities in Arizona. His expertise and commitment to client success have made him a trusted advisor in the field.
Check out our new page called "Answers to Frequently Asked Questions about 501(c)(3) Tax Exempt Charities."Â Here's a list of the topics covered in the FAQ: Applying for Tax Exemption Form 1023 and Form 1023-EZ Applications Deductible Donations Maintaining a 501(c)(3)...
Question: My group is considering forming a tax-exempt charitable organization. Can the organization be a limited liability company or must it be a nonprofit corporation? Answer:  It can be an LLC if the LLC is owned only by Section 501(c)(3) organizations or...
Question: Must an organization whose corporate charter is reinstated after being administratively revoked or suspended by the state submit a new exemption application? Answer: No. If a corporation is reinstated by the state after an administrative suspension or...
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