Arkansas 501c3 Corporations: Tax Exempt Organizations Non profit
Arkansas Nonprofit Incorporation
The state of Arkansas requires nonprofits incorporating within the state to adhere by the nonprofit laws as stated in the 1993 Arkansas Nonprofit Corporation Act including stating the specific language of the IRS when filing the articles of incorporation.
Form Non profit Organizations in Arkansas
There are several procedures to forming non profit organizations in Arkansas including choosing a name for the corporation, deciding on its mission and purpose and filing articles of incorporation with the Secretary of State and paying an initial filing fee of $50.
This state-specific document must include the approved name of the corporation, its purpose, a statement indicating if the corporation will or will not have directors, the name and address of the initial incorporator(s) and the name and address of the registered agent. You will also need to register with the State's office, apply for your Employer ID Number (EIN) and request recognition for tax-exempt status (Publication 556) from the IRS.
Advantages of the Tax Exempt 501c3 Corporations
There are many benefits and privileges to qualifying for the IRS 501(c) (3) tax-exempt status including obtaining the limited liability protection for members of the corporation, exemption from paying federal and state income taxes on profits generated by the corporation and the continued existence of the corporation even if a director dies or leaves the entity.
The IRS requires nonprofits to organize their charitable organizations as an "association", "corporation" or "trust" to obtain the full tax and financial advantages.