 |
|
| Liza Farrow-Gillespie | |
 |
|
| Dallas, TX | |
 |
|
 |
Texas Nonprofit Organizations
The most common form of business entity for a nonprofit organization is a 501c3 charity. Forming an organization that will operate as a 501c3 charity is a three-step process:
- Form the entity as a nonprofit corporation or LLC under state law; and then
- Obtain tax-exempt status from the IRS; and then
- Obtain tax-exempt status from the Texas state comptroller.
Contributors cannot deduct contributions to the charity from their federal income tax return until steps 1 and 2 are completed. The organization is not fully tax-exempt until all three steps are completed.
► How much does it cost to form a tax-exempt charity?
After tax-exempt status is achieved at both the federal and state levels, the organization may conduct its charitable business without being subject to taxation. However, the organization must still file certain annual reports and must comply strictly with other legal requirements to retain its designation as a 501c3 nonprofit organization.
For more information, or to make an appointment to discuss your charitable organization's questions and concerns, please contact Liza Farrow-Gillespie at 214-361-5600.