spring 2009 convention inter - chapter luncheon
DESCRIPTION
TRANSCRIPT
Spring 2009 Spring 2009 ConventionConvention
Inter - Chapter Inter - Chapter LuncheonLuncheon
Steps to IncorporationSteps to Incorporation
To Become a ChapterTo Become a Chapterthen…then…
• Chapter Name
• By Laws
• Federal Employer Identification Number
(EIN)
• Bank Account
• Chapter Charter
To Become a ChapterTo Become a ChapterNOW…NOW…
• Chapter Name
• By Laws
• Federal Employer Identification Number
(EIN)
• Bank Account
• Chapter Charter
• Incorporate in Your State
• Apply to IRS for Non Profit 501 (c) (6)
Chapter NameChapter Name
• International Concrete Repair
Institute – North Texas Chapter
or
• Arizona Chapter of the International
Concrete Repair Institute
By LawsBy Laws
• Details about operations– Name
– Object
– Members
– Officers
– Meetings
– Executive Board
– Committees
– Authority
– Amendments
Then…Then…
• Federal Employer Identification Number
(EIN)
– Obtained by IRS form SS-4
• Bank Account
– A checking account in the chapter’s name
• Chapter Charter
– ICRI National Approval of Chapter
The 990 Change The 990 Change
• Why the change at the IRS?• IRS wants to know what’s going on inside
nonprofit organizations • To file you must be a 501(c) (6)
organization• ICRI is• Chapters are not
Organizational Organizational ProblemsProblems
• What happens if we are not a non-profit?– You should be paying taxes like any other
corporation• Aren’t we under ICRI’s
exemption?– No, Each chapter a separate legal
organization. No group exemption.
Step One - IncorporateStep One - Incorporate
• Incorporate with your state– Every state has different processes, forms, paperwork– Prepare Articles of Incorporation– They are rules governing the management of a corporation– The Articles of Incorporation introduce your organization
to government agencies– Your By-Laws are designed to introduce your organization
to the members they serve.
Step One - IncorporateStep One - Incorporate
A corporation's Articles of Incorporation generally provide information such as:
• The corporation's name, which has to be unique from any other corporation in that jurisdiction.
• The name of the persons organizing the corporation, usually members of the board of directors.
• Whether the corporation is a stock or non-stock corporation – CHOOSE NON-STOCK
Step One - IncorporateStep One - Incorporate
• Whether the corporation's existence is permanent
or limited for a specific period of time.
• A corporation must state the purposes for which it is
formed. Some jurisdictions permit a general
statement such as "any lawful purpose" but some
require explicit specifications.
Step One - IncorporateStep One - Incorporate
• Example: The corporation is organized exclusively to
promote a common business interest and improve
business conditions of a line of business with the
meaning of Section 501 (c) (6) of the IRS Code of
1986. In furtherance of these purposes, but not by
way of limitation, the purpose of this organization is
the promotion of higher business standards, better
business methods and improvement of business
conditions in the concrete restoration, repair and
protection industry through the education of its
membership.
Step One - IncorporateStep One - Incorporate
• If a non-stock corporation, whether it is for profit or non-profit.
• In the United States, if a corporation is to be organized as a non-profit, to be recognized as such by the IRS, such as for eligibility for tax exemption, certain specific wording must be included stating no part of the assets of the corporation are to benefit the members.
• The names of the corporation's current Board of Directors.
• The location of the corporation's "registered office" - the location at which legal papers can be served to the corporation if necessary. Some states further require the designation of a Registered Agent: a person to whom such papers could be delivered.
Step One - IncorporateStep One - Incorporate
• File the Articles of Incorporation with the appropriate state officials or agency to be recognized as incorporated.
• You will need your By-Laws and approved Articles of Incorporation to be filed along with your Form 1024 in order to be recognized under section 501 (a).
Form 1024Form 1024
• Apply to become a non-profit with IRS– Form 1024 (19 pages)– Articles of Incorporation– By-Laws– Form 8718
• IRS will issue a Determination Letter
Form 1024Form 1024
• Form 1024 is 19 PAGES!!!!!!!
• Worry about pages 1-5 and 9 only.
Form 1024Form 1024
• Part I• First choose (d) • Section 501 (c) (6)• Business leagues, chamber of
commerce, etc.
Form 1024Form 1024
Starting with number 1
a.Nameb.President’s namec.Addressd.City, State and Zip Codee.Web site (if applicable)
Form 1024Form 1024
2. EIN #
3. Name and phone
4. End of accounting period
5. Date of incorporation
6. No
7. No
8. Choose option A – Corporation
- end of page 1 -
Form 1024Form 1024
Part II
1. Narrative Description of Activities
1. Type of event
2. Purpose of event
3. General frequency of this type of event
4. Where held (be general, no single location or specific)
5. Who conducts the event (by the Board members, etc.)
Form 1024Form 1024
Part II
2. List sources of financial support
1. Event fees
2. Event sponsors
3. Dues
4. Ad revenue from newsletters
5. Other sources
- end of page 2 -
Form 1024Form 1024
Part II
3. (a & b) Provide a list of Officers and Directors
Include name, address, title in chapter
organization and compensation - Zero
4. Not applicable
5. List the International Concrete Repair
Institute
6. The chapter has no stock
Form 1024Form 1024
Part II
7. Types of Members
Member of the chapter are members of ICRI.
Include types of members and number
General Member, students, lifetime, honorary,
etc.
8. Dissolution – use statement from By-Laws
- end of page 3 -
Form 1024Form 1024
Part II
9. No – we are non-profit
10. No – the group goes not charge for their services
11.No payments to shareholders
12. No, the chapter does not provide insurance
13.Not under supervision
14. Property lease – you can mention rentals of space
for meeting, but only if you have a contract
Form 1024Form 1024
Part II
15. No political influence
16. Attach copies of a few recent newsletters
or communications to members regarding
upcoming or planned activities.
- end of page 4 -
Form 1024Form 1024
Part III
Statement of Revenue and Expenses
Basic information that is the same as the
financial reporting for ICRI and Chapter
Awards forms
- end of page 5 –
Form 1024Form 1024
Pages 6 through 19 are all for a varies of
other organizations filing under Section
501 (a)
C9’s C4’s, C7’s, etc.
On Page 9 you can refer back to
Part II, Question 1 – your narrative regarding
types of meeting and events you provide
the members
YOU HAVE JUST COMPLETE ALL
THE STEPS
The Best Advice…The Best Advice…
• Talk to your professional (Lawyer/Accountant)– Non-profit experience a plus
I have the name and number of a great firm that is willing to work with you on this process. There may be some issues with certain states, but it will be discussed up front.
QUESTIONS?