What it is
A nonprofit is a corporation with its own registrations and its own returns. Forming it is the first step; tax-exempt status from the IRS and California is a separate application, and charities must also register with the California Attorney General. After that come the annual filings, which are owed even when the organization has little or no income.
Who needs it
- A group starting a charity, religious organization, school or community organization
- A nonprofit that was formed but never applied for tax exemption
- A homeowners association (HOA) that must file its yearly federal and California returns
- An organization that missed annual filings and has received a notice or lost its exempt status
- A nonprofit that needs bookkeeping or payroll for its staff
What we do
- File the Articles of Incorporation with the California Secretary of State, and the Statement of Information that follows
- Obtain the organization's EIN from the IRS
- Prepare the federal exemption application for a 501(c)(3) charity: Form 1023 or 1023-EZ
- Apply for California exemption with the Franchise Tax Board (Form 3500 or 3500A)
- Register a charity with the Attorney General's Registry of Charities and Fundraisers (initial Form CT-1), usually done together with the exemption application and priced separately
- Prepare the annual returns: Form 990, 990-EZ or 990-N; California Form 199 or 199N; and the Attorney General's RRF-1
- For HOAs: the federal return (Form 1120-H or 1120), the California return, and help keeping the association's books
What to bring
- The organization's name, purpose and planned activities
- Names and addresses of the directors and officers
- Bylaws, and the Articles if already filed
- A simple budget for the first few years
- For an HOA: the CC&Rs, bylaws, prior returns and the year's financial statements
- Any notice you have received from the IRS, the FTB or the Attorney General
What happens next
Timing matters: a 501(c)(3) that applies within 27 months of forming can usually have its exemption start from the day it was formed. We start by confirming which type of nonprofit fits your plans, then set out every filing and its due date so nothing is missed.
