Those who have started (or tried to start) a 501c3 charitable organization know form 1023 all too well. But here at Non Profit Legal Center, we want to give you some preliminary form 1023 instructions in plain language.
What types of organizations use form 1023?
Organizations that may qualify for exemption under section 501c3 include nonprofit corporations, non profit unincorporated associations and charitable trusts. Each of these types of nonprofit entities can file form 1023 to apply for 501c3 tax exempt status.
Does my organization need an Employer Identification Number to use form 1023?
YES. In fact, an organization cannot even file until it has an employer identification number.
Can an LLC file form 1023?
The IRS sees limited liability companies as for profit entities owned by its members, and therefore, we do not advise filing as an LLC nonprofit. It is possible but more difficult and it will raise questions from the IRS when you file form 1023 application for tax exempt status.
What activities should be described in Part IV of Form 1023?
Actual and/or planned, substantial activities should be described in this section.
Why does Form 1023 request detailed information about compensation and other financial arrangements with officers, directors, trustees, employees and independent contractors?
The questions in form 1023 ascertain the appropriateness of compensation and benefits paid to these individuals.
Here is the link to the official IRS form 1023 instructions and the 1023 application form.
