The main disadvantage would be an increase in the paperwork. Articles of incorporation must be prepared and filed with the appropriate state agency, bylaws have to prepared, and minutes have be maintained and certain federal and state tax exemptions must be timely filed to obtain a tax-exempt status.

Under Internal Revenue Code Section 501(c)(3) a nonprofit corporation is eligible for certain federal tax exemptions, which can amount to significant, tax savings. Just like a for-profit corporation, nonprofit corporations receive the same limited liability protection. Thus, the directors, trustees, and officers of a nonprofit corporation are not personally liable for the debts and liabilities of the corporation. See similar questions...

A nonprofit corporation is created by filing a Certificate of Formation with the Secretary of State. See Form 202 (Word, PDF). A “nonprofit corporation” is a corporation no part of the income of which is distributable to members, directors, or officers. A nonprofit corporation may be created for any lawful purpose, which purpose must be stated in its Certificate of Formation. See similar questions...

If you intend to apply for IRS federal tax exemption as a charitable organization, your articles of incorporation must contain a required purpose clause and a dissolution of assets provision. Valuable information on 501(c)(3) qualification is on the IRS website, www.irs.gov. It includes sample articles of the incorporation. Click the Charities and Nonprofits link and then scroll down to find the Life Cycle of a Public Charity link.] See similar questions...

A Texas nonprofit corporation is not automatically exempt from federal or state taxes. To become exempt, it must meet certain requirements and apply with both the IRS and the Texas Comptroller of Public Accounts. See similar questions...

Generally, political and social action activities are permissible purposes for a nonprofit corporation; however, certain activities may affect a nonprofit corporation’s tax-exempt status. For more information, contact the Texas Ethics Commission, (512) 463-5800, the Federal Elections Commission, or the IRS. See similar questions...

Exemption from federal taxes is determined by the IRS. IRS Publication 557, “How to Apply for Recognition of Exemption for an Organization,” describes the rules and procedures for requesting exemption. Questions about federal tax-exempt status can be directed to: Exemption from Texas state taxes is determined by the Texas Comptroller of Public Accounts . Questions can be directed to: See similar questions...

The Texas Non-Profit Corporation Act and the Texas Business Organizations Code require a nonprofit corporation to have at least three directors, one president, and one secretary. The same person cannot be both the president and secretary. Officers and directors must be natural persons. See similar questions...

The Attorney General has statutory authority to (1) investigate charities that operate as nonprofit corporations, and (2) inspect the books and records of all corporations, including nonprofit corporations. The Secretary of State has no such authority. See similar questions...

The Texas Non-Profit Corporation Act and the Texas Business Organizations Code require nonprofit corporations to maintain financial records and minutes of certain proceedings and make them available to members for examination and copying. The board of directors is required to prepare or approve an annual financial report. In general, all records, books, and annual reports must be available to the public for inspection and copying. See similar questions...

Yes. Name reservations are now “generic” and can be used to form any type of filing entity. See similar questions...

You file Articles of Incorporation. The Secretary of State's office provides optional forms for articles of incorporation of profit corporations, or the legal document may be drawn up by an attorney or the individuals wishing to form the corporation. If the individuals do not wish to seek the help of an attorney, they may refer to Idaho Code for assistance. Section 30-1-202 for profit corporations and 30-3-17 for non-profit corporations. See similar questions...

The biggest advantage of forming a corporation is that a separate legal entity is formed, meaning that the corporation is responsible for paying the debts and taxes, freeing the individual from liability. See similar questions...

Yes, Seedlings is a 501c3 organization. Nonprofit status was requested and granted in 1984 so that donations could be obtained to subsidize the cost of book production. Braille books are very expensive to produce, but with the help of grants and donations, we are able to make our braille books available at a much-reduced cost (at an average of approximately $10 per book!) See similar questions...