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Choosing a Domain Name for Your Small Business Website

DomainNameSmallBusinessRecently, we’ve talked about choosing the perfect business name, and how to create a winning website — both important steps in the start up of a successful small business.

But have you thought about the domain name for your small business website? It’s one of the next steps you’ll need to take once you’ve found the right company name and formed a business that best suits your particular needs.

What is a Domain Name?

Simply put, it’s a website address. Typically, you’ll see them begin with www, http, or https (for secure sites), but when you’re searching for your domain name you don’t have to worry about these prefixes.

What’s important is what comes at the end of the domain name: .com, .net, .org, etc. Your domain name has to be available with one of these endings — the most popular being .com. There are many small business owners who assume that since they’ve formed a business under a certain name, it will be available for purchase as their domain name. Not true.

How to Check for Domain Name Availability

Visit a site like GoDaddy, and simply type in the name you’d like to use. Typically, if your company name is available, it’s a good idea to purchase it (at least as .com and .net), even if you want to use a variant for your website address.

With GoDaddy, you’ll be cued up for a .com domain name, but there’s a drop down menu which will give you access to other options. Click the search button to see if the name you want is available. If it’s not, available options (with endings other than .com) will be listed, as well as variants on the name itself.

If your preferred name is not available as a .com, you’ve got to decide if another choice is acceptable to you. Will customers and clients remember that you’re a .US or a .net? Or will this pose a potential problem?

Some of the GoDaddy variant options may suggest that you place a dash somewhere in the name. For example, if you company name is TechnoToys, Techno-Toys may be available. Once again the question arises whether or not people will remember to enter the dash in your domain name. There has also been talk that having a dash in one’s website address could be perceived negatively by search engines like Google and Bing.

What if Your Preferred Domain Name is Taken?

First of all, don’t panic. There’s a chance it’s being used by another company, and there’s also a chance that it’s been purchased by another company who’s looking to sell it for a profit.

With GoDaddy, you can click on “WHOIS” at the top of the page (just under where it says your domain name choice is already taken). This will give you info on who owns the domain name, as well as contact information. Next to WHOIS, you’ll find “Domain Buy Service,” which is a service that acts as an intermediary between you and the legal owner of the domain.

Another option is to brainstorm and find a domain name that is available. But gaining ownership to the exact domain name you want (especially if it’s your business name) is typically an excellent idea. You don’t want another business using it do you?

Of course, GoDaddy is not the only provider in town — it’s just the most well known. If your domain name is not available there, it won’t be available on another site that provides the same type of service.

Best of luck with your domain name and your small business!

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Small Business Insights: Filing an Initial Report

Small-Business-Initial-ReportThere’s a good chance you’ve never heard of an Initial Report filing. Although it’s very similar to a small business Annual Report, it is by far the lesser known of the two.

One of the main reasons for this is that it’s required by less than a dozen states (at the time of writing this article). Another reason is that it’s due rather quickly after a small business owner forms an LLC or S corp — typically between 30-120 days depending on the state. This doesn’t leave a small business owner with a lot of time to get a handle on all there is to know about their newly formed business.

If you haven’t heard of an Initial Report, fret not. The following article will provide you with a good understanding of what it is, and whether or not you need to file one …

What States Currently Require an Initial Report Filing?

Ten states currently require that an LLC, S corp or C corp submit an Initial Report filing:

  1. Alabama
  2. Alaska
  3. California
  4. Connecticut
  5. Georgia
  6. Missouri
  7. Nevada
  8. New Mexico
  9. Oklahoma
  10. Washington

What Needs to be Included in the Initial Report Filing?

Typically, the report must include the following information:

  • Your current business address. If this changes, don’t worry. You can update your address in your Annual Report.
  • The name and address of your current Registered Agent. If you haven’t designated a Registered Agent, there’s a good chance it’s you. It’s a good idea to gain a clear understanding on what a Registered Agent is, so you can determine whether or not you want to delegate this responsibility to a company (like BizFilings) who is adept at handling this requirement.
  • Name all of your current officers, directors and members. Since the Initial Report filing is due so early in the existence of your small business, you man not have all of these players in place before you have to file. Again, no problem. Simply update this info when you submit your Annual Report.
  • You’ll also have to clearly state your business activity.

Each state is different. We strongly advise that you check with your home state, as well as any states in which you have a Foreign Qualification (additional U.S. states where you conduct business), to ensure that you include all required information and fees in your submission.

Speaking of Fees, What Does it Cost?

Generally speaking, Initial Report filing fees range from $30 to over $100, depending on the state. This will also be true with your Annual Report and your County Filing (if either, or both, is required).

What Happens if you Fail to Submit an Initial Report?

If you fail to file your Initial Report, your small business could fall into what is commonly known as “bad standing.” If this happens, your small business could incur additional state fees. You could also face a revoked business status, or the state could choose to dissolve your business — taking away the benefits of your company formation — including limited liability protection.

I’m sure you’ve noticed that many of the details mentioned are contingent on each particular states requirements. Something else to keep in mind is that there may be different contingencies in place depending on which type of business formation you’ve chosen. If you formed a for-profit corporation (S corp, C corp) or an LLC, these ten states may require that you file an Initial Report. If you’re a nonprofit company, you won’t have to file.

There are two main reasons why these states require new small businesses to file an Initial Report. It gives them accurate information pertaining to your business, and it provides the state with additional revenue.

We’re Here to Help

Whether you simply have questions, or need assistance with an Initial Report filing, feel free to give our customer service team a call between 8am and 7pm CST, at 800-981-7183. You can also visit our Contact Us page to speak with us via Live Chat during the same days and times. Or, send us an e-mail anytime. We’re always happy to help.

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Reinstatement: Restoring Your Small Business to Good Standing

ReinstatementRestoringYourCompanyToGoodStanding

Nobody forms a business with the intention of letting it fall into bad standing. But sometimes it happens. There are instances where a small business owner may not be aware of when a state requirement is due, let alone know that it exists at all. There are other times when a struggling business simply does not have the funds to pay their annual report fee, or some other state requirement that’s needed to keep them compliant.

Regardless of how you got there, if you’re in “bad standing” with the state, the question is how do you get back to good standing? Before we tackle this question, let’s define what bad standing means.

What Does it Mean to be in Bad Standing?

When a company has not met all the requirements of its home state of incorporation, or any states in which it has a Foreign Qualification (additional U.S. states where it conducts business), it can fall into bad standing.

For example, a small business can fall into bad standing if it fails to file its annual report in a timely manner. Another instance would be if your Registered Agent resigns from representing your company (this typically happens when a small business has failed to pay the Registered Agent’s annual fee). In the state of California, failing to pay your franchise tax puts you in bad standing, while New York state businesses would suffer the same fate if they don’t meet the states publications requirement.

Companies that are in bad standing long enough risk being dissolved or revoked by the state. When a state administratively dissolves a corporation or Limited Liability Company (LLC) or revokes the company’s corporate or LLC status, the benefits of each company formation — including limited liability protection — are lost.

How to Reinstate Your Small Business Back to Good Standing

A company may be required to undertake the reinstatement process when it has fallen out of good standing with its home state, any state(s) in which it has a Foreign Qualification, or if it has been dissolved due to failure to comply with state rules and regulations. Reinstatement requires a company to resolve outstanding business compliance issues and submit necessary forms and fees to the state.

To follow is a list of the major requirements a business needs to meet in order to be reinstated to good standing:

  • First it must identify all of the steps it must take to become compliant
  • It must determine any and all outstanding or overdue fees due to the state
  • A small business must obtain and complete all necessary forms required to be reinstated
  • Audit these reinstatement forms, looking for any errors prior to submission
  • Submit completed reinstatement forms to the appropriate state agencies

Reinstating your business allows you to regain the benefits and advantages of both corporate status and the limited liability protection that comes with it. When you reinstate your business, you will gain the peace of mind that you can enter new contracts and continue running your operations without worrying that your business has an uncertain legal status.

Compliance Tools

After you have taken the necessary steps to reinstate your business to good standing with the state, consider using a compliance management tool to notify you of upcoming compliance events for your corporation or LLC. Any small business who utilizes BizFilings as their Registered Agent has free access to BizComply, which makes it easy to remain compliant.

What if You Want to Dissolve Your Company?

If a small business is in bad standing with the state and wishes to dissolve, most states require a reinstatement to be filed prior to allowing the dissolution. As a side note, some states also allow a reinstatement to be filed if the company has dissolved but would like to reverse the dissolution to again begin transacting business under the same company.

We’re Here to Help

We understand that this can be very confusing, complicated and time consuming. Whether you simply have questions, or need assistance with reinstating your small business back to good standing, feel free to give our customer service team a call between 8am and 7pm CST, at 800-981-7183. You can also visit our Contact Us page to speak with us via Live Chat during the same days and times. Or, send us an e-mail anytime. We’re always happy to help.

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Filing an Annual Report: An Overview for Small Business Owners

Filing-an-Annual-Report

What is an Annual Report?

This is a question that’s asked by many new small business owners, as well as aspiring business owners, year after year. Understanding what an annual report is, as well as when it’s due, can help your small business remain compliant.

And, if you’re still deciding on your small business formation, understanding your companies potential annual report obligations (as well as its potential tax obligations) can go a long way in helping you clarify which choice is best for you.

Depending on the state you incorporate in, an annual report (also referred to as an annual statement) may be due if you’re a Limited Liability Company (LLC), S corp, C corp, nonprofit company, Limited Liability Partnership (LLP) or Limited Partnership (LP). Although many states require the filing of an annual report, some require biennial reports, while others require no report at all.

The best way to determine your company’s due date would be to visit the Secretary of State’s website for your home state, as well as each state in which you’ve Foreign Qualified (an annual report will be due in each). Sometimes searching online for your state’s “Department of State” can also bring you to the information you need.

In addition, small businesses that utilize us as their Registered Agent can view their annual report deadline, as well as a wealth of other information, through BizComply (a web based application that’s included in our Registered Agent Service).

Typically, annual reports ask for certain business information, which again varies by state. Commonly requested information includes:

  • The current principal business address
  • Names and addresses of the management of business (directors and officers for corporations and members/managers for LLCs). This would also include any management changes
  • Number of shares of stock a corporation has issued is also required
  • Who is your current Registered Agent?
  • An annual report fee, which varies greatly by state. In some instances there is no charge, however the typical range is between $50 — $400

In addition to providing the state with current business information, annual reports also serve another purpose — they generate additional revenue streams for the state. Regardless of your opinion on this, remaining compliant is the recommended way to go in order to keep your business running smoothly without any potential compliance problems.

Filing Your Annual Report Late, or Failing to File

Most states will attach a late fee to an annual report that has not been filed on time. There are some cases where the late fee is waived for nonprofit corporations.

In many cases, failure to file an annual report by a certain date will result in the administrative dissolution or revocation of the business entity on the state’s records. Reinstatement is possible, but at an additional cost (not to mention the time it will take to fill out a reinstatement application).

We’re Here to Help

If you have questions about annual reports, Registered Agent Service, forming your small business — or need help reinstating your company to good standing — feel free to give our customer service team a call between 8am and 7pm CST, at 800-981-7183. You can also visit our Contact Us page to speak with us via Live Chat during the same days and times. Or, send us an e-mail anytime. We’re always happy to help.

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Demystifying the DBA (Doing Business As) Registration

DBA

There are many reasons why a Doing Business As (DBA) filing may be a good choice for a company. In this article, we’ll define what a DBA is, what it’s not, and cover the major reasons you might want to consider filing for one.

What is a DBA?

A Doing Business As filing is an official, public way to register one’s company name with a state or a local jurisdiction (such as a county). It allows a sole proprietor or a company (LLC, S corp, C corp …) to do business under a different name. DBAs are also referred to as an assumed name, fictitious business name or trade name. There are no limits to the number of DBAs a business can register.

What a DBA is Not

DBAs are not the same as forming a business. If you file for one without first forming an LLC, S corp, or some other type of company formation, you will be perceived as a sole proprietor by the state you’re doing business in. In this case, it’s legal for you to conduct business, but you won’t have any limited liability protection.

Forming a business like an LLC or S corp typically grants the owner of a company limited liability protection, which is one of the major benefits of forming a company. If you’ve formed an LLC in a particular state, you can then file for a DBA name and retain your limited liability protection. That being said, if you plan on growing your business into additional states, you’ll need to Foreign Qualify in each respective state before filing your DBA. If you don’t, each state you have not Foreign Qualified in will perceive you as a sole proprietor.

Why File for a DBA?

To follow are seven of the top reasons why business owners file a DBA. Please note that these reasons may vary depending on a business type.

To transact business under a different name
To transact business under a name other than the official name of the company or sole proprietorship. A DBA allows a sole proprietor, corporation or LLC to name the business something other than the legal name, which in the case of a sole proprietor is the name of the individual.

New name for new business activity
Often a Doing Business As name is used when a company wishes to enter a new line of business or to market a new product or service. As a corporation or LLC, you may eventually expand to a new area not represented by your current business name, and having a more relevant name could be beneficial.

Domain name as DBA
A DBA can be filed in order for a company to transact business under the company’s domain name. This is especially helpful when your company name is not available as a domain name.

Open a business bank account
Banks typically require sole proprietorships and general partnerships to have a DBA before opening a business bank account.

Additional business credibility
Having a DBA can lend additional credibility for sole proprietorships and general partnerships.

Public notification
Filing a Doing Business As notifies other businesses that the name is in use, as the DBA name becomes part of the public record.

A prospective client requires a DBA to award you a job
Some clients may require you to have a DBA in order to contract with you. If you’re a freelance graphic designer, for example, and you bid to do work for a local corporation, you may be required to have a DBA — but it’s more common that you’d be required to incorporate your business.

Please note that the reasons listed above may vary in relevance to your company depending on your business type. We strongly advise speaking with your accountant or attorney to determine whether or not filing for a DBA is the right choice for your business.

Filings a DBA can be tricky. Depending on the state, there are times when paperwork and fees are filed on the local or county level, while other times a particular state may require a filing with a state agency — instead of or in addition to —  the county. Some states/counties may require you to publish with a local newspaper, providing public notice of the Doing Business As filing.

We’re Here to Help

Whether you need assistance with a filing a DBA name, or have questions about forming a business, feel free to give our customer service team a call between 8am and 7pm CST, at 800-981-7183. You can also visit our Contact Us page to speak with us via Live Chat during the same days and times. Or, send us an e-mail anytime. We’re always happy to help.

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Tips for Small Business Branding: Creating a Winning Website

CreatingaWinningWebsiteIn a previous article, we focused on the importance of choosing the right small business name, and how this choice is the first of many branding decisions that will either add to, or take away from, the image and ultimate success of your business.

Today, I’d like to take a look at another facet of branding that plays a key role in the success of your small business: your website.

Before we get started, let’s take a look at a component that should be visible on every page of your online presence — your logo …

Logo Design

Rumor has it that a picture is worth a thousand words. If the name of your company is important, just think about how important your company logo or graphic is. When it comes to branding, your logo is at least as important as your company name. Your job is to make sure it’s eye catching and memorable — and that it supports your business name, products and overall philosophy. In other words, it’s not something you want to decide on quickly, and unless you’re an artist you’ll probably need some professional help.

Creating a Website

The question isn’t will your small business have a website, the question is what will it look like?

Every small business will have a different budget, which will in turn determine the caliber of web designer you hire to create your site. But there are some core elements that every successful website needs to have:

It Needs to Look Good
Keep your website’s design clean and uncluttered, and make sure your company name and logo are prominently, yet tastefully, on display. A small budget is no excuse to create a website that’s unfriendly or unattractive. If you want to grow a business, it needs to look nice.

It Needs to be Easy to Navigate
Your website has to have seamless function. Navigation bars and drop-down menus need to be designed with clarity and simplicity in mind, and they need to work well. It’s often tempting to want to create web pages that are very dense. Resist this temptation, or your web pages may be perceived as complex and confusing. On your website, it should be easy to find stuff, easy to pay and easy to find help. Think about the user experience. It will certainly be on the minds of your customers.

Killer Content
The copy (often referred to as content) on each page needs to contain certain components. It needs to speak in a voice that’s clear, and that your customers can relate to. Copy needs to be written in a way that’s engaging and relevant to the reader, and the benefits of your products or services need to be highlighted (and truthful). There’s also a need to have an SEO (Search Engine Optimization) strategy in place to ensure that the search engines can easily find your website.

According to Jon Wuebben, the author of Content Rich, SEO is, “the practice of using a variety of techniques to improve a site’s ranking on the searcch engines. These things could include editing or adding HTML code and working with site navigation features and employing linking strategies.” SEO also involves the frequency, quality and placement of keywords and keyword phrases. Reading the suggested articles in the next section will shed more light on SEO.

It Needs to be Google Panda Compliant
Have you heard of Google Panda? In a nutshell, Google Panda is an algorithm that filters websites into two groups — sites it likes and sites it doesn’t like. The sites that Panda “likes” are upgraded in Google’s search results, while the ones it doesn’t like get downgraded. It’s critical that you understand the contingencies that Panda has in place. For a detailed analysis, please read the following articles:

These are some of the best practices to keep in mind when creating a winning website. Design, function, content and SEO all play a pivotal role in how your website will rank with the infamous Google Panda.

If this all seems daunting, you are not alone. But if you take it one step at time, you’ll have a website that serves you, and your customers, well.

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How to Name a Business: The Importance of Branding

HowToNameABusiness

What’s in a Name?

Years ago, some companies would name a business that began with ABC or 123, so they’d be at the beginning of a yellow pages listing.

It wasn’t a good idea then, and it’s still not.

Why? Because names like ABC Plumbing aren’t memorable, nor are they descriptive of one’s company.

When you’re thinking about how to name a business, it’s important to take the time to consider a few key questions to help you arrive at the right choice. Remember, your company name is the first of many branding decisions that will either add to, or take away from, the image and ultimate success of your business.

Six Basic Questions to Ask Before You Name a Business:

  1. What are the main benefits of the products or services my company offers, and how can I have this be evident in my company name?
  2. Is there a single, meaningful benefit I can highlight that’s shared among all products/services?
  3. Do I want my customers or clients to perceive the company as cool, techie, serious, smart, funny, snarky? In other words, what type of image do I want to imbue into the minds of my customers?
  4. Should my company name be directly attached to me? If I’m a designer (even if I’m not famous yet), I’m going to want my products to be synonymous with me.
  5. Will the company name I choose lend itself to compelling branding — both in content and aesthetically? I want my products, Website and business cards (to name a few things) to engage and connect with customers and potential customers.
  6. Is my company name simple and easy to “get,” or is it complicated? Simple sticks.

Some of these questions may be hard to gauge so early in the process, but discussing these points with a trusted group of friends or business associates can help you effectively name a business — as well as define your company’s branding in a multitude of ways. The last thing you want to do is form a company with a boring business name, or one that has a negative connotation that you didn’t notice yourself. You’ll also want to ask your trusted group if the name you’ve chosen is engaging and relevant to them.

State Name Check
Once you’ve decided on potential names, it’s time to see if it’s available in the state you want to incorporate. We offer a free service called State Name Check, which is a preliminary check to see if your preferred name choice is available. All information is kept confidential, and there’s no commitment to incorporate your business with BizFilings. Results will be e-mailed to you within two business days.

Click here to see if your preferred business name is available.

Please note that a name check conducted before the incorporation documents are submitted is considered preliminary. The final determination of availability rests with the state, once the state has reviewed your incorporation documents and business purpose.

We’re Here to Help
Whether you need assistance with a state name check, or have questions about forming a business, feel free to give our customer service team a call between 8am and 7pm CST, at 800-981-7183. You can also visit our Contact Us page to speak with us via Live Chat during the same days and times. Or, send us an e-mail anytime. We’re always happy to help.

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Small Businesses Resources, Part 1: The Association of Small Business Development Centers (ASBDC)

Small-Business-ResourcesIf you’re an entrepreneur, or small business owner, there’s a very good chance that you can benefit from getting involved with the Association of Small Business Development Centers (ASBDC).

They provide excellent resources — both locally and nationally — for networking, funding ideas, free forms, community connections and much more.

In a Nutshell …
“America’s Small Business Development Center Network is the most comprehensive small business assistance network in the United States and its territories. The mission of the network is to help new entrepreneurs realize their dream of business ownership, and assist existing businesses to remain competitive in the complex marketplace of an ever-changing global economy.” — ASBDC

To make full use of the resources the ASBDC provides, it’s a good idea to take a look at both their national website, as well as the local website.

ASBDC National Website
Here, you’ll find an abundance of resources including:

  • The ASBDC Blog
  • A gateway to special offers, discounts and opportunities
  • Free webinars from ASBDC partners
  • Helpful links for small businesses regarding information, products and services
  • Business resources for veterans of America’s Armed Forces
  • Disaster assistance
  • There’s also an annual conference which, “brings together over 1,400 Small Business Development Center (SBDC) professionals, trainers, consultants, management, and administrative personnel.” The 2012 annual conference is September 11th.

    Let’s Talk Local (SBDC)
    Each local small business development center (SBDC), offers unique opportunities for entrepreneurs and small business owners based on the needs of each individual state and city.

    There are programs in place focusing on topics like startup business solutions, youth entrepreneurship programs and veterans business programs — to name a few. Some local SBDCs  offer networking events that bring small businesses together. Of course, attending classes or presentations will also give you the opportunity to meet other business owners — making your professional circle larger and stronger.

    Local SBDC websites are chock-full of information, but you can also call to speak to someone the old-fashioned way — by phone. I have spoken to my Wisconsin SBDC, and I can honestly say that the representative I spoke with was extremely knowledgeable, pleasant and happy to answer questions and offer direction to relevant resources.

    As an entrepreneur or small business owner, you need every edge you can find to build and maintain a successful business. The SBDC is an excellent place to find this.

    Related Links:
    SCORE
    SBA.gov
    Startup America

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    Tax-Exempt Companies and IRS Form 990-N

    IRS-Form-990-N.jpegHave you heard of the IRS Form 990-N?

    If you haven’t, you are not alone. But that doesn’t mean it’s not an important form. In fact, if it’s not filled out for three consecutive years a company will automatically lose its tax-exempt status.

    In an effort to help your nonprofit organization remain compliant, we’ve put together this brief article to give you a quick overview of the form and whether or not you’ll need to actually file one.

    The first thing you’ll need to determine is whether you’re a tax exempt organization with annual gross receipts that are usually $50,000 or less. If you are, filing IRS Form 990-N (e-Postcard) is typically required. Companies can also file a complete Form 990 or Form 990-EZ, instead of the e-Postcard.

    Due Date of the e-Postcard

    According to the IRS, “the e-Postcard is due every year by the 15th day of the 5th month after the close of your tax year. For example, if your tax year ended on December 31, the e-Postcard is due May 15 of the following year. If the due date falls on a Saturday, Sunday, or legal holiday, the due date is the next business day. You cannot file the e-Postcard until after your tax year ends.

    Filing IRS Form 990-N

    Click here to file your form. The IRS has partnered with the Urban Institute to make this form available for completion online. This form must be completed and filed electronically. There is no paper version.

    What You Need to Complete the e-Postcard(according to the IRS):

    1. Employer Identification Number (EIN), also known as a Taxpayer Identification Number (TIN)
    2. Tax year. Are you following a calendar tax year, or a fiscal tax year?
    3. Legal name and mailing address
    4. Any other names the organization uses
    5. Name and address of a principal officer
    6. Web site address if the organization has one
    7. Confirmation that the organization’s annual gross receipts are normally $25,000 or less ($50,000 for tax years ending on or after December 31, 2010)
    8. If applicable, a statement that the organization has terminated or is terminating (going out of business)

    For more information, please visit the IRS Form 990-N page.

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    Choosing a Tax-exempt Status for Nonprofit Companies

    Tax-Exempt

    Nearly everyone’s heard of the infamous 501(c)(3) tax-exempt formation. But did you know that there are other no less than 32 tax-exempt options for nonprofits?

    To follow is a listing of four of the most popular ones — including 501(c)(3) — along with a brief description of what makes each of them unique …

    501(c)(3)

    These are typically public charities or private foundations established for a variety of purposes including: religious, educational, charitable, scientific, literary, testing for public safety, fostering of national or international amateur sports, or prevention of cruelty to animals and children.

    • Application form number: 1023
    • Annual return required to be filed: 990 or 990EZ, or 990-PF
    • Charitable contributions allowable: Typically, yes

    501(c)(4)

    Geared toward civic leagues, social welfare organizations, and local associations of employees. This type of nonprofit generally promotes community welfare, as well as charitable, educational and recreational endeavors.

    • Application form number: 1024
    • Annual return required to be filed: 990 or 990EZ
    • Charitable contributions allowable: No, generally

    501(c)(6)

    This type of nonprofit is often a business league, chamber of commerce, or real estate boards. The general nature of activities involves improvement of business conditions of one or more lines of business.

    • Application form number: 1024
    • Annual return required to be filed: 990 or 990EZ
    • Charitable contributions allowable: No

    501(c)(7)

    Consisting predominantly of social and recreation clubs, this type of nonprofit organization focuses on pleasure, recreation and social activities.

    • Application form number: 1024
    • Annual return required to be filed: 990 or 990EZ
    • Charitable contributions allowable: No

    A Note on Defining Your Business Purpose
    Your business purpose is an explanation of what your nonprofit corporation is formed to do or provide. Having a very detailed description is essential. If you plan to apply for tax-exempt status, the IRS will require a copy of your Articles of Incorporation and will pay particular attention to your business purpose and use it to classify your business.

    For a complete list of nonprofit, tax-exempt formation choices, visit our IRS Organization Reference Chart.

    We’re Here to Help
    If you have questions, or would like assistance with forming a nonprofit company, feel free to give our customer service team a call between 8am and 7pm CST, at 800-981-7183. Or, send us an e-mail anytime. We’re always happy to help.

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