When starting a church in the US, you register it with the state and federal governments.It's not the same as getting a license to operate a church.There is no requirement for you to register your church.If you want to incorporate your church, you need to register it with your state's secretary of state.If you want to get tax-exempt status from the federal government, you need to incorporate.
Step 1: You can choose the officers for your church corporation.
Pick people who will run your church and serve on its board.Business decisions will be made on behalf of the church by these people.There are no legal requirements for church officers who are over 18 years old.Your church and its members will continue to be supported by officers who believe in it.Free professional services can be offered by officers who are also lawyers or accountants.
Step 2: You have to apply for an employer identification number.
Think of your church's EIN as a tax identification number.Even if it isn't going to have any employees, your church needs one.If you use your own Social Security number for church business, you'll be stuck.If you're going to incorporate your church, you need an EIN.You can apply for an employer identification number online.The service is only available from Monday to Friday.The online service isn't available if you want to get an EIN immediately.
Step 3: You can open a bank account for your church.
You can open bank accounts in the church's name if you have an EIN.These bank accounts are needed to accept donations, fund projects, and pay church employees.Special bank accounts are available for churches.These accounts don't charge fees and may have other features that can help promote your church.The best accounts for your church can be found at different banks.
Step 4: Pick a location for the church.
Depending on what area you feel most called to minister to, you may be able to choose a location for your church.You can either build a new church building or identify a building you want to use.A new church building needs significant capital to be built.While the building is being constructed, you may want to use a temporary location.If you want to find out if areas in your community aren't being reached as well as others, talk to other pastors.
Step 5: The church corporation's bylaws should be written.
The rules of operation for your church's board are in the bylaw.You might think of the church's constitution as the bylaw.When you register your church corporation, you don't have to submit this document.You will need to submit them to the IRS as part of your application for tax-exempt status.Your church's board operates, hires employees, and makes decisions on behalf of the church.Information about how board members can step down is included in the byelaws.Search online for a sample bylaw.You can get an idea of the types of information in your byee.An attorney who specializes in church or nonprofit corporation formation can help you.A "Statement of Faith" is one of the documents that many churches create.These documents may already be prepared by the church's counsel if you are starting a church of a particular domination.You would need your board of directors to adopt them.
Step 6: An attorney specializing in church corporation formation is a good choice.
It can be more difficult to incorporate a for-profit business.An attorney will make sure your documents are in line with the state's requirements.Attorneys give their services to churches for free.Your local bar association can help you find attorneys that will work with your church's budget.Religious legal associations can connect you with an attorney or give you legal advice.
Step 7: The church's articles of incorporation should be drafted.
The only document you need to file with your state is the articles of incorporated.The names and addresses of your board members and your church are listed.If you don't want an attorney to draft your documents, look for forms or templates in your state.You may be able to download them from the secretary of state's website.You can find the website for your state's secretary of state by visiting http://www.e-secretaryofstate.com/.
Step 8: You need to register your church corporation in your state.
You should submit your articles of organization and any other documents required by your state to the appropriate state government agency with the incorporated fee.Fees are usually no more than $100 in some states.Your state may have a cover sheet or other application form that you need to fill out and file.To solicit donations from the general public, nonprofits need to register with their state.Churches don't have to register and are not subject to the same reporting requirements as other nonprofits.
Step 9: Comply with your state's recordkeeping requirements.
To maintain your corporate status, certain financial and donation records must be kept and made available for inspection.Some states may require regular audit reports to be submitted.Ensuring that your records are maintained according to your state's regulations can be done by an accountant who specializes in bookkeeping for churches and other nonprofits.
Step 10: You need to complete the application for tax-exempt status.
To download the form you need, visit theirs.gov/charities-non-profits/applying-for-tax-exempt-statusYou should download and read the instructions carefully.It can be difficult to file for tax-exempt status.They may be able to help you if you hired an attorney.A tax professional who works with nonprofits can also help.Some accountants and tax professionals are willing to help churches.You can ask for help in an ad on your church's website.
Step 11: The supporting documents are required for your church.
When you apply for tax-exempt status, you have to provide documents that support your information.There are some documents listed on your application.
Step 12: Following IRS recommendations, organize your application packet.
You should organize your application and documents before you submit them to the IRS.This will allow the IRS to process your application quicker.The packet should be followed from top to bottom with the following order: A check or money order for your user fee, a completed application form and required schedules.
Step 13: Send your application to the IRS.
You can mail your packet to the Internal Revenue Service.The user fee is $600 and includes a check or money order.If you need proof of a mail and receipt date, use a private delivery service.You need to use one of the approved delivery services on the list.To submit an application using a private delivery service, you must mail it to the Internal Revenue Service.
Step 14: Wait for a reply from the IRS.
It can take up to a year for the IRS to make a decision on your application.An IRS agent will call you if the IRS has questions or needs more information.If you submitted your application within 27 months of the start of your church, your tax-exempt status will relate back to that date.
Step 15: You should report your tax-exempt status to the state revenue agency.
Even if the IRS recognizes your church as tax-exempt, you still have to register with your state.Each state has its own tax-exempt requirements and regulations.Click on the name of your state to find out more about its tax-exempt registration requirements.Proper financial records should be maintained after your church's tax-exempt status is recognized.If you're looking for an experienced accountant, you may want to look for one who's been in the business for a while.