b'pawLAWHave You Been ConsideringStarting A Nonprofit?by Dionne M. Blaesing, Esq.I N THE LAST FEW YEARS ,ANI - your organization, usedMAL LOVERS have come to for all banking, tax andunderstand that a euthanasia pro- registration requirementsgram is not a solution for pet under federal or state law.overpopulation nor is it palatable It is comparable to a socialas humane treatment for the security number. You willstray dogs and cats need the number even iftroubling our neighborhoods. default format if you have not created you have no employees.People are creating rescue groups a business entity with the Department You must file a completed IRS formand organizations to harbor strays safe- of State Division of Corporations), SS5 with the IRS. You may do thisly with the goal to place these animals corporation, LLC, partnership or the electronically at the IRS website,in caring, permanent homes. The most not for profit corporation. You are not www.IRS.com; the IRS will respondsuccessful of such groups understand creating a rescue or humane organiza- almost immediately with the corporatethat their mission is a business and tion to make a profit; the commonly EIN number.must be organized like a business used entity available to you is the Fl. STEP THREE: Obtain thecomplying with local, state and St. 617. Not for Profit Corporation. IRS Federal Tax ExemptionInternal Revenue ordinances and reg- Note there are more complex organi- 501C3: (Either IRS form 1023 orulations. Failing to do so can result in zational options for special situations 1023ez depending on size and financ-personal tax and legal liability for the which are too complex to address ing). Now you must register with thefolks who are trying to do a good here. federal government to avoid federalthing. To set up the entity, you must tax liability. If you skip this step, theIf you are one of the good people, comply with the provisions of Fl. St. IRS will not recognize your not forI suggest that you work with an expe- 617; meaning basically, you must file profit status even though you have arienced animal and business law attor- the appropriate Articles of Florida not for profit corporation reg-ney and an experienced charity organ- Incorporation, signed by the incorpo- istered with the State of Florida. Theization CPA before you begin opera- rator(s), name a directorship or board IRS does not grant tax exempt statustions. As a Florida licensed attorney, of directors, perhaps name officers, to a sole proprietor. If the corporationmy comments are based on Florida name a registered agent (who must is not granted IRS exemption, it can-law. You should seek legal assistance sign to accept the designation), and not be exempted for Florida taxes.from an attorney licensed in the state pay the fee for incorporation to the The IRS Code 501C(3) iswhere you will establish the rescue. State of Florida. Although a person designed for animal humane charities.Further, my comments are a just a can do this electronically at The corporation must file applicationguideline; This article simply cannot www.sunbiz.com, (Florida Department form 1023 or 1023ez with the IRS.address all the complexities and deci- of Corporations), I suggest that an Once granted, the IRS will not taxsions each organization will face. attorney be involved to help you avoid the money coming into the organiza-STEP ONE: Set Up A pitfalls which may haunt you later.tion as a corporate profit nor as tax-Florida Not For Profit Business STEP TWO: Obtain An EIN able personal income of the rescueOrganization. In Florida, State Number For The Corporation organizers. Have your CPA establish astatutes provide for options that (IRS form SS5). An EIN is the corporation book keeping system toinclude a sole proprietorship (the Employer Identification Number for ensure it is kept up to date. Continued gwww.TheNewBarker.com Summer/Fall ~ 2015 THE NEW BARKER 67'