Step 1: Establish the organizational structure of your company You must ascertain your organization’s legal structure before requesting a tax-exempt number. Nonprofit organizations may conduct business in Louisiana as corporations, limited liability firms, or unincorporated groups. The optimal structure for your firm should be carefully considered because each one has different requirements and advantages.
File Articles of Incorporation in Step 2 You must submit Articles of Incorporation to the Louisiana Secretary of State if you choose to incorporate your nonprofit as a corporation or LLC. Before you may proceed with the tax-exempt application procedure, this document, which explains the goal, structure, and governance of your company, must be approved.
Apply for Tax-Exempt Status in Step 3
Once your organization has been lawfully established, you can submit an application to the Louisiana Department of Revenue for tax-exempt status. A copy of your articles of incorporation or other governing papers must be included with Form R-1029. If your organization qualifies for exemption, the Department will examine your application and provide you a tax-exempt number.
Step 4: Register with the Secretary of State of Louisiana Your organization may also need to register with the Louisiana Secretary of State in addition to receiving a tax-exempt number. Your company will be recognized as a legitimate entity in the state and be able to transact business and sign contracts thanks to this registration. Annual reports and a fee must normally be submitted as part of the registration process. Costs of Starting a 501c3 Depending on the size and scope of the organization, the cost to establish a 501c3 organization can differ significantly. Fees for legal and accounting services, as well as filing costs for state and federal applications, are generally to be expected. Depending on the complexity of your organization and the services needed, these prices can range from a few hundred to several thousand dollars. Louisiana’s Bylaws Must Be Obeyed Nonprofits in Louisiana are not required to have bylaws, however it is highly advised. Bylaws are documents that describe the policies and processes for running your company. They can assist avoid disputes and guarantee that everything goes according to plan. Maintaining a Nonprofit A nonprofit organization can be operated by one person, but it’s crucial to have a strong board of directors or advisory group to give supervision and direction. Fundraising, program development, and financial administration are just a few of the many duties involved in running a nonprofit. It is crucial to have a distinct mission and vision for your business as well as a dedication to giving back to the community. The distinction between a nonprofit and a 501(c)(3) Any business or institution established with a philanthropic, educational, or social purpose and which does not share earnings with its members or shareholders is considered a nonprofit. A specific category of nonprofit that the Internal Revenue Service (IRS) has approved as being exempt from federal income tax is a 501c3 organization. An organization must apply to the IRS for 501c3 registration and fulfill specific criteria, such as having a charity purpose and operating only for the public good.