|27225 Camp Plenty Rd., Suite 5
Santa Clarita, CA 91351
Tel. 661.523.DOCS (3627)
|Mon, Tues, Wed, Fri||10:00 - 5:30|
|Thursdays||10:00 - 7:30|
|Sat (by appointment only)||10:00 - 1:00|
All hours by appointment
The term Nonprofit Organization (NPO) is not a legal term or a technical definition, but rather makes a general reference to the fact that a certain organization is mandated by its bylaws to use the surplus revenue to achieve its goals, rather than distribute the profits to the shareholders.
Over the years, we have incorporated several California Nonprofit Organization in the Woodland Hills and Santa Monica locations. Whether you run a homeless shelter or a dog adoption program, or are devoted to helping children in developing countries, we can assist you with incorporating your California Nonprofit Organization for a low flat fee of $399 + filing fees.
Once you are properly incorporated in California, you are allowed to ask for a tax ID number, you can open a bank account, hire a staff, solicit donations and beginning “to do good” in the best sense of the word.
However, in order to avoid being taxed as a regular for profit corporation (think for example at the flat tax of $800 that the Franchise Tax Board charges every corporation and LLC each year), you’ll need to be approved by the IRS and officially “certified” as a 501(c)3 (from the article of the tax code that allows nonprofit to be exempted from certain taxes).
Obtaining the 501(c)3 status is a process that takes several months, and it’s basically a back and forth between the representative of the nonprofit and the IRS on matters regarding the corporation (allocation of funds, directors of the company, etc.). After the process it’s over, you’ll be “certified” as a legitimate and true nonprofit, as verified by the IRS.
Apart from the taxes implications, approved 501(c)3 allow donors to write off their donations, hence improving the chances of being selected by a corporate sponsor or a large donor.
The Document People is a network of legal document assistants who specializes in assisting customers with nonprofit California incorporations. We offer Nonprofit incorporations in We the People Woodland Hills, We the People Santa Monica, San Fernando, We the People Glendale and The Document People Torrance, Anaheim and Oceanside.
The information contained in this blog – including information of a legal nature – is provided for informational purposes only, and should not be construed as legal advice on any subject matter.