Indiana 501c3 Corporations: Tax Exempt Organizations Non Profit

Indiana Tax Exempt Organizations Non Profit

When forming a Tax Exempt non profit organization in Indiana, applicants must first investigate the rules under which non profit organizations are classified. This information is readily available on the website of the Secretary of State and various law firms operating within the state. The state offers various benefits to non profit organizations.

These include:

• Non profit organizations do not pay income or property taxes
• Special postage rights
• The ability to establish a bank account
• Personal liability for the organization’s directors

Forming a Non Profit Organization like a 501c3 Corporation in Indiana

The state has specific guidelines that applicants must follow when applying for non profit status corporations like a 501c3 Corporation. The first step is to convene a meeting of the directors of the organization to determine the name of the organization, the type of services it will provide, its primary address, the way its assets will be distributed upon termination, budget, and lifespan of the organization, bylaws and management style.

The directors then seek verification of the name of the organization from the state board to prevent duplication. The directors then apply to the Secretary of State for articles of incorporation. This process includes completing application forms requesting the information discussed in the preliminary meeting.

After receiving approval, they then register the organization with several other boards to solidify their status. These include:

• IRS which issues the organization with an Employer Identification Number (EIN) to permit them to employ workers. They also grant the organization 501 (c) (3) tax-exempt status that exempts the organization from paying federal and state taxes.
• Board for Charitable Organization grants the organization permission to solicit financial support from both state and private sources.

For more information

• Non profit overview
• Is a 501c3 right for you?