how do you start a non-profit business that’s tax-exempt?
I have all these chickens and since they started laying I’ve been buried in eggs. I finally got the idea to sell all the eggs to the local food mart, and donate all the profit to charity. I was also thinking that if I could get some companies to match the money, I could donate all that as well. If I start this as an official business it will look really good on my college resume, but I don’t want to be taxed if it’s non-profit. I’ve heard about something called 503c, but I don’t really understand it. Please help?
Learning when you are allowed to and how to start a non profit business are critical steps in a business such as this.
Because of their tax exempt status, non-profit companies must be managed closely. Learn the subtleties of starting a non-profit business…
Non-Profit companies provide a great service for the betterment of society. Often, many wonderful charitable causes are taken up by non-profit entities and with great success.
Just donating your profits to charity does not make YOU a charity, it makes you a very nice person who donates to a charity. Don’t worry — even that will look good on your college applications.
You could start here http://www.irs.gov/charities/index.html?navmenu=menu1 and do a lot of reading to see what you’d have to do. It’s complicated, and your idea would not qualify for 501(c)3 designation, which is IRS designation for a charitable organization.
It does not work that way. What you do with the profits is up to you. The company still have to pay taxes on the profits. See the IRS website for the requirements for setting up a charity.
you will have to get the information on the 1023 and 1026, tax exempt status registration
which is not an easy one to complete
I frankly don’t see your enterpise falling within the scope of a non profit status but you can get the information on both at http://www.irs.gov, request the booklets etc, the forms to complete are inside