This website contains information about Victorian, NSW and Commonwealth laws. Your group leader might have to report it on her personal income tax return because she could be seen as a proprietor. You will also need to draft bylaws that govern your new corporation. The Internal Revenue Service and state tax boards grant nonprofits tax exemptions so organizations can use their full resources toward their missions and goals. You will also need a federal EIN number so that you can file taxes for your social club.Daniel Ketchum holds a Bachelor of Arts from East Carolina University where he also attended graduate school. Engineers for the Environment is a nonprofit consulting firm that helps developers prepare environmental impact reports for nonprofit housing developments. Nonprofit corporations can be sued -- but their members and directors are generally protected from personal liability, meaning that their own money, houses, cars, or other property isn't at risk. Once you receive your official, state-sealed articles of incorporation, you can apply to the IRS for tax exemption under tax code 501(c)(4). You may be required to send a copy of the bylaws to the state.Use IRS form 1023 to file for tax-exempt status, which means being declared a 501(3)(c) organization. Consult an attorney or accountant before getting started.Eric Feigenbaum started his career in print journalism, becoming editor-in-chief of "The Daily" of the University of Washington during college and afterward working at two major newspapers. Incorporating your club is not compulsory. However, incorporation also brings with it responsibilities to report to government. This page contains content that does not match your current locationThe decision about incorporation is an important decision for community groups. Incorporated associations are non-profit organisations. Content about Federal laws will display in addition to content about laws for any state or territory selected. Registration is inexpensive and it's relatively easy to establish and operate – the profits are also not subject to tax. But sometimes groups grow and begin to expand activities, sponsor tournaments or competitions and possibly raise money.

Your club's corporation must adhere to all applicable state and federal laws related to the operation of a corporation and especially the regulations regarding maintaining nonprofit status. All

This generally means that no more than 35% of the club’s gross receipts should come from non-member sources. Once you have chosen a name, draft articles of incorporation and have your initial directors sign them and file them with the secretary of state's office.

They know that many people in the community would chip in to help fund their effort if their group was a recognized public charity eligible to receive tax-deductible contributions. Below are the different types of incorporation your club could adopt: Company limited by guarantee Company limited by shares The model rules. Welcome to the Information Hub.

Should you incorporate? Sun City Anthem in Las Vegas, even though legally incorporated as a non-profit, was hit with millions of dollars worth of fines and back taxes because it failed to declare money from its country club restaurant as income.  The club may not have provisions that allow for discrimination based on a person's race, color, or religion.