State and Local Government Filings
- Before starting operations, review state and local laws to ensure compliance on topics including, but not limited to:
- register (if necessary) before starting any fundraising
- register (if necessary) before engaging in any lobbying
- secure (if necessary) permits and licenses required because of:
- goods or services provided (e.g., health care);
- types of clients served (e.g., fingerprinting of employees dealing with children);
- types of employees hired (e.g., educators or health care providers); and
- location (e.g., zoning in certain areas)
- Complete state tax exemption requirements (usually must wait until IRS acts)
- Register (if necessary) for unemployment insurance and reporting to officials
- Register (if necessary) to secure any additional tax exemptions (e.g., property tax, sales tax collections, exemptions from paying sales tax)
Issues to Address: Structure, Operations, & Compliance
- Initial internal issues
- structural – staff, space, services
- set up systems and policies –
- accounting
- fundraising (e.g., that required legal disclosures are made)
- human relations – for volunteers and paid employees (e.g., rebuttable presumption & intermediate sanctions rule)
- insurance
- Regular activities
- tax withholdings
- board meetings
- Quarterly – e.g., reporting taxes withheld (federal/state/potentially local)
- Annually
- file annual report with state government
- File Form 990 information return with IRS (and any similar form required by the state)
- re-register any required items (e.g., charitable solicitation)
Step 1: Research
Step 2: Key Questions to Ask Before Getting Started
Step 3: State Forms
Step 4: Federal Filings
Step 5: Final Steps
