Illinois 501c3 Corporations: Tax Exempt Organizations Non Profit
Illinois Tax Exempt Organizations Non Profit
Tax exempt non profit organizations within the state of Illinois take the form of charitable groups, community development organizations and religious organizations. The state requires that non profit organizations fit certain criteria that must be adhered to in order to maintain their status. These include:
- They are prohibited from taking profits and paying dividends to their principals
- They must have at least a three-person board of directors
- They must post their annual expenditure to the state board for perusal
Forming a Non Profit Organization like 501c3 Corporations in Illinois
Forming a non profit corporation like 501c3 Corporations in Illinois is a simple process. It begins with the establishment of an unregistered name for the corporation. An application is then made to the Secretary of State office for articles of incorporation.
This state-specific document requires information such as the name and address of the corporation and its directors. The state will also need a declaration of the stated goals of the organization. Once approved, you will receive the articles of incorporation along with two additional copies. The directors then apply for an Employee Identification Number (EIN). This will allow the organization to hire employees and open a bank account.
After completing and satisfying all the requirements for the non profit status, the directors can file section 501 (c) (3) with the Internal Revenue Service (IRS) to qualify for the tax-exempt status that gives the organization many tax and financial advantages such as exemption from paying federal and states income taxes. They must also register with the Charitable Trust Bureau to receive permission to solicit or hold charitable funds.
