Thanks for the help everyone - unfortunately I'm still a bit confused. I realize we need to incorporate BEFORE filing form 1023, but do we need to get a new or ammended EIN after we incorporate? We really needed the EIN so we can open a new bank account, so that had to be our first step.
Our treasurer is calling to refresh her memory about filing for incorporation in the Commonwealth of Massachusetts - they only supply a form called Articles of Organization and said it is used to incorporate. It calls the business the "corporation" and appears to be the form to use.
Just when I felt like a had a grasp on what we need to do in what order....
Just my 2 cents... In NJ we found it easier to incorporate first with the state and then get our EIN. The first time I helped a parent group go from PTA to PTO (done three to date) we got our EIN and then filed with the state as a nonprofit corporation. Unfortunately, the new PTO's name was too "similar" to the old PTA's name according to the state. So, we had to change the name slightly and had to amend the name on the SS-4. Since NJ doesn't require the EIN on their form, the next two times I started paperwork I found that incorporating with the state first was easier just in case we had to change anything.
Of course, you'll have to do some research specific to your state to see what works best for you. Other than that, I followed Critter's guidelines above EXACTLY!!
You're good. Get your EIN (which I see they're also calling the TIN now for "tax id number") first. Then incorporate in your state. Be sure your Articles of Incorporation include the language on dissolution and conflict of interest that the IRS requires if your state doesn't require them (ours didnt so we had to file an amendment when the IRS told us the AOI were incomplete). That's in the PTOtoday startup guide and on the IRS's website, and in the instructions for the 1023, I think.
Then file the 1023. Regardless of how old your group is, the IRS views your incorporation date as the date your group was founded. Thus, when you complete the 1023, you do it from the perspective of a brand new group with no actual history. You project your future activity, rather than reporting actual results.
Like said above, if you want to incorporate after earning the 501c3, the IRS views it as starting a brand new group. That's why you must file the 501c3 application again, which of course, means another filing fee and the hassle of doing the application all over again.
If you're just getting started, I would strongly encourage you to incorporate. It's usually a small fee ($25-$50) per year and it provides some measure of liabiilty protection for your officers since the group is now a corporation. For further advice, or to confirm this info, you can contact your state's attorney general's office and/or the IRS.
yes if you are planning on incorporating you should do that first, other wise you start from scratch and it costs alot more money and time. I am not sure that if you incorporate that you need a new ein number if you are doing the steps in order. Critter???
"When you stop learning you stop growing."
The instructions for the SS-4 say that if you incorporate you will need a new EIN. If you do plan on incorporating I think that should be done first, then apply for you your tax exempt status. A PTO in our district got approved as an unincorporated organization, and then had to do it all over again several years later when they decided to incorporate.
Okay - we got our EIN - it only took about 5 minutes over the phone! We also did a rough draft of our Articles of Organization and a first run-through of form 1023. We're on our way!!
