Getting 501c3 status from the IRS is one of the most crucial procedures you’ll need to do if you want to launch a nonprofit organization in Oklahoma. This will provide you the opportunity to accept donations that can be deducted from your taxes, as well as free your organization from some taxes and give you credibility with donors and the general public. A step-by-step tutorial for obtaining a 501c3 in Oklahoma is provided here.
You must choose a name for your organization and incorporate it as a nonprofit company in Oklahoma before you can apply for 501c3 status. The Oklahoma Secretary of State must receive the articles of incorporation, and the IRS must issue the company an EIN (Employer Identification Number).
The objective of your organization as well as the services and programs it will provide should be clearly stated in the mission statement. You must develop a thorough plan for how you’ll carry out your objective, including how you’ll generate money, who your target market is, and how you’ll gauge the success of your efforts.
Step 3: Submit an application for federal tax exemption In order to get a federal tax exemption, you must submit Form 1023 to the IRS. This is a long and complicated application that needs specific information regarding the governance, structure, finances, and operations of your business. Additionally, you’ll have to pay a filing fee, which can range from $275 to $600 based on the annual total receipts of your company.
Step 4: Submit an application for state tax exemption Nonprofit organizations having 501c3 status are exempt from state sales tax in Oklahoma. You must submit Form STS20002 to the Oklahoma Tax Commission to request this exemption. You must submit your IRS federal determination letter along with details on the operations and financial standing of your organization.
While starting a nonprofit organization by yourself is conceivable, it’s generally not advised. It takes a lot of effort and money to start and run nonprofit organizations, so having a group of motivated people on your team can sometimes be useful in achieving your objectives. Additionally, having a board of directors can give your organization oversight and accountability. Am I Eligible for a 501c3?
Your organization must be set up and run only for charitable, educational, religious, scientific, literary, or other designated objectives in order to be eligible for 501c3 status. Additionally, it must be run in the public interest rather than for the advantage of specific people or groups. Your company must also refrain from any actions that are against the law or go against public policy.
In Oklahoma, are 501c3’s exempt from paying sales tax? Yes, 501c3 organizations having IRS tax-exempt status are often exempt from Oklahoma state sales tax. To make sure that your firm is in compliance with all relevant rules and regulations, there are a few exceptions and limits, therefore it’s crucial to speak with a tax expert.
You must submit Form STS20002 to the Oklahoma Tax Commission in order to request tax-exempt status in Oklahoma. You must submit your IRS federal determination letter along with details on the operations and financial standing of your organization. It’s crucial to remember that applying for IRS tax-exempt status is a separate procedure that necessitates submitting Form 1023.
The price of obtaining a 501c3 in Oklahoma may differ depending on a number of variables, including the organization’s size, legal fees, and filing fees. Generally, depending on the organization’s anticipated yearly gross receipts, the filing fee for Form 1023, the application for acknowledgment of exemption, ranges from $275 to $600. But additional costs, including legal fees, might also be included, driving up the final bill.