Help Guides and Resources | Page 7

How are nonprofit corporations taxed?

Income earned by normal for-profit C corporations is taxed twice: once at the entity level and then again at the personal level when that income gets disbursed to shareholders and employees. However, nonprofit corporations that qualify under section 501(c)(3) of the IRC are exempt from paying federal income tax and are eligible to receive tax-deduct...

What are meeting minutes?

Meeting minutes are used to record all items discussed and resolutions passed at board meetings. Maintaining these records is much more than a mundane formality. Minutes play an important function in helping the business show how important decisions were made and which members voted for what. Corporations are required to keep these records in order...

Do I need to be a U.S. citizen or resident to start a nonprofit corporation?

The short answer is no; there is no requirement that you be a U.S. citizen or resident to start a nonprofit corporation. In practice, it may be difficult to run a corporation from abroad; however, there is no legal requirement that the incorporators be citizens or maintain residency, and the process for incorporating for foreigners is the same as fo...

What is a nonprofit corporation?

Nonprofit corporations are organized under state law for a "public benefit," meaning for a purpose other than earning profits. They typically aim to benefit the public or specific public groups by providing charitable, educational, religious, literary, or scientific services. Nonprofit corporations range from small local charities to large nationwid...

How does nonprofit taxation differ from other business entities?

Nonprofit corporations that obtain tax-exempt status with the IRS are exempt from paying federal income tax and may also have a number of other tax exemptions available at the state and local levels. The following is a brief overview of how other common business entities are taxed. Sole proprietorships – Profits are taxed once as the sole proprietor...

How should landlords use your services?

Our documents help thousands of residential and commercial landlords overcome a variety of legal challenges they face on a daily basis. Our services allow you to customize rental applications, eviction notices, and leases of all shapes and sizes....

What is an EIN and do I need one?

“EIN” stands for Employer Identification Number and is required by the IRS for tax identification purposes for any business with employees as well as businesses falling under a few other categories. Specifically, the IRS requires that a business obtain an EIN if it: has employees; operates as a corporation or partnership; withholds taxes on income o...

An Overview of 501(c)(3) Provisions and Purposes

A business organized under Section 501(c)(3) of the U.S. Internal Revenue Code is one used for charitable purposes. The business is exempt from federal taxes and must be a nonprofit. A 501(c)(3) organization may be a private foundation, public......

How is an LLC taxed?

An LLC is a pass-through entity. That means that the earnings of the LLC are actually taxed through the owner or owners of the LLC. That also means that there are no federal corporate taxes that are imposed on the LLC and it is ultimately a saving for the business. As such, the owner or owners report the profits and losses on their own individual in...

How to Form an LLC Online

Before you start a company, you need to decide which entity you will use. Each entity has different tax obligations and, depending on your company size and structure, those tax methods could be beneficial or a hindrance. Additionally, different entities offer different levels of protection from lawsuits. A limited liability company (LLC) offers the...