Frequently Asked Questions

Please reach us at baumer-ustica@sbcglobal.net if you cannot find an answer to your question.

1) How long does it take to incorporate?

Approximately 1 day to 8 weeks, depending on the state.

2) How long does it take to obtain 501 (c) (3) status from the IRS?

Form 1023EZ: Approximately 1-4 months.

Form 1023 (Long Form): 6-12 months. Organizations with operations outside of the USA tend to generate more questions by the IRS & generally take longer.

3) Is there any way of obtaining 501 (c) (3) status faster?

There is no way to rush the IRS. The above time frames are averages, but we have often had exemption approval in records times, even as soon as 1 week. You can choose to join a Parent Organization instead of going through the IRS for your tax exemption. You must make certain it is an organization that holds a 4 digit group exemption number. If it does not, then it is not a valid Parent Organization who is allowed to take in other corporations under its covering. If you ask the Parent Organization for their 4 digit number and they do not know what you are talking about, then it is likely they are not a valid Parent Organization. Be careful though, once you are incorporated, you cannot operate under another ministry or church. You must find a Parent Organization with a GROUP EXEMPTION NUMBER, if you choose not to file for exemption directly from the IRS.

4) When can I start receiving contributions for my organization?

You may officially begin receiving contributions as of the date of your incorporation.

5) How long do I have to file for tax exemption from the IRS?

27 months after incorporation.

6) What if I file for tax exemption after the deadline has expired?

If granted exemption after filing late, you will be given an exemption date as of the date you filed the application, not retroactive to the incorporation date. Some exceptions apply if you can show just cause for filing late.

7) If my organization is already incorporated and established as a 501(c)(3), but I would like your company to do other work for our organization, what do I do?

Please e-mail, call or write us and we can let you know if the service you are in need of is something we provide. You may also want to take a look at our General Fee Schedule under Fees & Forms for a list of other services we offer.

8) Can my Board of Directors or Trustees be related?

Yes, you can have relatives on your Board, but it is our recommendation that you maintain a majority of unrelated individuals. For example, if a husband and wife are on the board, they would need three others who are not related to one another or to the married couple to be considered a majority of non related. This is not a law that it be this way, but it may make your exemption process go more smoothly if you follow this rule.

9) Should my organization be “for profit” or “non-profit”?

This depends on your circumstances, so please give us a call or send us an email, and we can make a recommendation to you as to which you should set up.

10) Everyone says I need to set up a nonprofit corporation, but I have no idea how to operate it. Is it complicated?

No, it is actually relatively simple! We offer free advice during the incorporation process and once set up, we offer a Retainer Service that allows our clients to ask us questions any time to assist them through the steps of operating a nonprofit.

11) Do all my board members need to be US citizens and/or reside in the United States?

It is recommended that at least one of your Board members be a U.S. citizen. None of the Board members have to reside in the US; however, it is helpful if at least one does. If not, you must have someone in the state of your incorporation to deposit funds for your organization there. You must also maintain a Registered Agent in the state of incorporation.

Frequently Asked Questions

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