BAUMER-USTICA & ASSOCIATES
Administrative Support to Those in Ministry
About Incorporation
We recommend that every church or ministry incorporate as a protection for its governing board, the officers and every member of the organization.
Many accountants and attorneys are unfamiliar with the practice as it relates to non-profit organizations. Our expertise in the area of non-profit organizations, specifically in dealing with the IRS and various state agencies, has earned us an excellent reputation.
We have a 35-year perfect record in our filings with the IRS. No application for exemption we have filed has ever been denied.
Let us handle this tedious part of the process so you can concentrate on your efforts on areas YOU have been equipped to serve.
Risks
If you form a non-profit religious organization, every day you delay could be costing money that could be used to proclaim the Gospel of the Lord Jesus Christ.
The responsibilities of an unincorporated church can, and in some cases, have, become the responsibilities of the individual members of the church or ministry.
In as much as there is no legal entity and it consists of a voluntary group of persons without a charter, formed by mutual consent for the purpose of promoting a common enterprise, it is not liable on its contracts, which are regarded as the liability of the individuals who signed them.
Members of an unincorporated association are individually liable for tortious acts or agents or employees of the association if the tort is committed within the scope of their authority.
Prayerfully consider incorporating today. You will receive fast, quality and personal service. You have come to the right people to assist you.
If you form a non-profit religious organization, every day you delay could be costing money that could be used to proclaim the Gospel of the Lord Jesus Christ.
The responsibilities of an unincorporated church can, and in some cases, have, become the responsibilities of the individual members of the church or ministry.
In as much as there is no legal entity and it consists of a voluntary group of persons without a charter, formed by mutual consent for the purpose of promoting a common enterprise, it is not liable on its contracts, which are regarded as the liability of the individuals who signed them.
Members of an unincorporated association are individually liable for tortious acts or agents or employees of the association if the tort is committed within the scope of their authority.
Prayerfully consider incorporating today. You will receive fast, quality and personal service. You have come to the right people to assist you.
Advantages of Incorporating and Becoming a 501c3
The total income of a non-profit corporation, whether or not it be a church or evangelistic or mission outreach, is exempt from income tax.
In most states, the corporation may buy items for its use free of sales taxes. These taxes vary from 6 to 10 percent and could result in substantial savings when making purchases for the organization. For example, you could save $320 if you bought a $4,000 organ with an 8 percent sales tax rate. All office supplies and major expenditures are exempt from sales taxes in most states.
An ordained, licensed or commissioned minister may be exempt from paying income taxes on his total costs for housing. In most situations, this could amount to money in excess of thousands per year.
If your organization is a valid church and owns a church building, you would be exempt from all real estate taxes in most states. This could amount to an annual savings of thousands of dollars.
In most situations, employees of a corporation would not be liable for damages or failures of the corporation. Consequently, this means free of lawsuits for damages.
The corporation would pay all of the out-of-pocket expenses of the minister, including mileage for use of a personally owned automobile.
Donors can make charitable contributions and receive a tax deduction on their tax returns.
The corporation will be qualified to receive private and public grant money.
Lower postage rates on corporate mailings.
The total income of a non-profit corporation, whether or not it be a church or evangelistic or mission outreach, is exempt from income tax.
In most states, the corporation may buy items for its use free of sales taxes. These taxes vary from 6 to 10 percent and could result in substantial savings when making purchases for the organization. For example, you could save $320 if you bought a $4,000 organ with an 8 percent sales tax rate. All office supplies and major expenditures are exempt from sales taxes in most states.
An ordained, licensed or commissioned minister may be exempt from paying income taxes on his total costs for housing. In most situations, this could amount to money in excess of thousands per year.
If your organization is a valid church and owns a church building, you would be exempt from all real estate taxes in most states. This could amount to an annual savings of thousands of dollars.
In most situations, employees of a corporation would not be liable for damages or failures of the corporation. Consequently, this means free of lawsuits for damages.
The corporation would pay all of the out-of-pocket expenses of the minister, including mileage for use of a personally owned automobile.
Donors can make charitable contributions and receive a tax deduction on their tax returns.
The corporation will be qualified to receive private and public grant money.
Lower postage rates on corporate mailings.