Washington 501c3 Corporations: Tax Exempt Organizations Non Profit
Washington Non Profit 501c3 Corporations
The Washington Non Profit Corporation Act of 1969 sets out the statutory framework under which non profit organizations like 501c3 Corporations operate. These organizations may take on various forms including religious, educational, civic, patriotic, political and scientific. The act prohibits organizations (such as cooperative organizations, banking and insurance organizations) from applying for this status. In addition, the state prohibits non-profit organizations from generating profits for their principals.
Forming a Non Profit organization in Washington
To make the application process for a Non Profit organization in Washington simple, the state has published a series of brochures in print and online for applicants to peruse. These booklets set clear guidelines for incorporating your non-profit organization.
The process begins with convening a meeting of the directors of the organization to draft the bylaws of the organization, budget, and management style and choose a unique and unregistered name for the organization. Once achieving approval for the name, they can apply for their articles of incorporation which involves completing application forms with the names of the organization and it principals, along with the intention of the organization. The directors then apply for an Employer Identification Number (EIN) which gives the organization permission to enter into employee contracts.
Attaining tax-exempt status
Attaining a tax-exempt status is one of the most important steps to completing the application process. This requires meticulous documentation as this status dictates the organization?s relationship with the IRS. Analysts recommend the services of a lawyer to prevent any misunderstanding of the requirements. Under the IRS 501 (c) (3) tax-exempt status, non profit organizations are exempt from paying yearly income taxes.