Virginia Non-Profit's

Thinking of starting a Virginia non-profit? Would you like to have tax exempt status so that your non-profit won't be required to pay taxes and donors may deduct charitable donations?  If so, you've come to the right place.  We can get you started quickly and easily.

Forming a Virginia non-profit and becoming tax exempt is a multi-step process and is a bit more complicated than forming a traditional Virginia corporation or Virginia LLC.  Don't let that discourage you, though.  If you follow these steps, in order, you'll get it done.

1.  Form a Virginia non-stock corporation.  This is different than a normal Virginia corporation because it does not have "shareholders" and there is no stock in the corporation.  This is because a charity cannot have owners, in the traditional sense, that participate in the profits and equity of the charity. 

Since there are no shareholders, the Virginia non-stock corporation is controlled by members or a board of directors. Depending on the level of control that the founders want to retain over the non-stock corporation, it is sometimes advantageous to have both Members and a Board of Directors.

To form the Virginia non-stock corporation, you must file articles of incorporation with the State Corporation Commission, being sure to include a couple of key provisions required for your IRS tax exempt application.

2.  Draft by-laws specifying how the Virginia non-stock corporation will be operated.  The terms of the by-laws will need to be customized to how you will manage the affairs of the non-profit and will vary based on whether you have Members or just a Board of Directors.

3.  Draft a conflict of interest policy for your directors and members.

4.  Have your organizational meeting where you formally bring the Virginia non-profit to life, elect the initial directors, and approve the by-laws and conflict of interest policy.

5.  Obtain an EIN for the Virginia non-stock corporation from the IRS.

6.  Complete and file Form 1023 for the IRS.  This is the application for tax exempt status that, if approved, will make your non-profit tax exempt and able to offer donors a charitable deduction for their contributions.

Want help forming your Virginia non-profit?  We can form your Virginia non-stock corporation and draft the by-laws, conflict of interest policy, and organizational meeting documents for a fixed flat fee of $500.00 plus the filing fee charged by the Virginia State Corporation Commission.  Click here to get started right now.

Do you have additional questions or would like some advice about your particular situation?  Take advantage of our consultation service and quickly and cost-effectively get answers that you need to start off right.

Call us at 804-290-7990 to discuss how we can help you obtain tax exempt status.