How Do You Restructure A Business To A Non-Profit Status?
If your for-profit business serves a need that benefits the community, and if the business’ earnings go back to its expenses, you can restructure your business as a nonprofit and receive tax-exempt status. It can take a few weeks or months to set up a nonprofit, and you must file paperwork with the IRS. Incorporate your business in your state if you haven’t already. Secure nonprofit status in your state. Contact the secretary of state to find out if your state has specific forms and requirements. Download the IRS forms you need to file for federal nonprofit status as a 501(c)(3) organization. Use form 1023 if you have a public charity and 1024 if you have a social welfare organization, then fill them out and submit them to the IRS. Register for an Employer Identification Number (EIN) online at the IRS website or by telephone. Submit completed paperwork and financial data to the IRS. Include your articles of incorporation and association, trust indenture, constitution or other organizin
