YOU CAN DO IT YOURSELF!
The first thing our company advises you is that you can complete the 501c3 application yourself. You don’t have to have a lawyer, CPA, accountant or even our company complete the application for you. It takes a fair amount of time to figure out, but you can do it.
Our fee is $1200 to complete the LONG FORM for the standard nonprofit (about two thirds less than most companies charge) and $750 for the SHORT FORM.
As a client, we will send you our multi-point TIP sheet on all the beginning steps you need to take as you plan to incorporate your company. That includes important information on incorporating, securing the URL (web address) for your business, your EIN number, forming your board, starting a website, etc.
The IRS will typically require you to incorporate your business with the appropriate governmental agency in your state. In California, that is the Secretary of State.
We won’t stop just at the application process. Once you attain your 501c3 status, there are things you must do – mandatory filings – to make sure you stay in compliance with both state and federal regulations. We will advise you on those requirements as well.
THE COST AND THE PROCESS
On average, it takes three to four months for the IRS to respond to your application with a Determination Letter. If approved, your tax-exempt status will be retroactive to your date of incorporation. If there are fixable problems, the IRS will ask questions about additional information they require. Alternatively, your application could be denied. Do not believe any company or professional that tells you they can “guarantee” that your application will be approved. Only the IRS has the power to approve your application.
Though we have a 100% success rate so far with all our clients receiving their 501c3 tax-exempt letter, we still do not profess to guarantee it.
The fees that you pay to the IRS and to our company are separate and each are nonrefundable.
IRS 501c3 application filing fees (paid to IRS):
Form 1023-EZ – The short form IRS filing fee for nonprofits with a projected gross receipt revenue of less than $50,000 a year is $275 (as of 2023).
LONG FORM IRS Form 1023 – The more traditional and detailed form is almost 30 pages and the one that organizations expecting to earn over $50,000 a year must file with the IRS to obtain their tax exempt status. Many of the schedules will not apply to you. The IRS Form 1023 User Fee, which is now $600 as of 2023, regardless of your organization’s projected future income. This application fee is made payable online directly to the IRS after we complete the rest of the application and turn the file over to you.
OUR APPLICATION PREPARATION SERVICES:
Our Services involve advice on incorporating, securing the URL for your business, starting a webpage, and applying for your Employee Identification Number (EIN). We complete the IRS Form 1023 (the actual application) with the budget, any required schedules, and the critical NARRATIVE portion of your application that answers many of the questions on the form. We also prepare your corporate bylaws. These completed documents, and the IRS check sheet, are all uploaded to IRS system, along with your payment.
SEVERAL WEBSITES WILL ADVISE YOU THAT CPAs, consultants and attorneys who specialize in helping nonprofit organizations with the 501c3 application charge, on average, $2,500–$4,000 for preparation of IRS Form 1023 applications for small organizations.
We hope you will choose us.