Arizona is a progressive state when it comes to self-service forms for different types of legal matters. The Arizona Corporation Commission has forms to help you set up your own non-profit. Unfortunately, the forms provided do not contain every provision necessary to reach tax exempt status. You can save yourself time, money and frustration by having an attorney set up your non-profit from inception.
Most non-profits seek to become tax exempt entities (also referred to as “501(c)(3)’s” due to the applicable provision of the IRS tax code). In order to become a tax exempt entity, you first need to set up a non-profit organization with your state. State requirements for a non-profit are less strict than those requirements of a 501(c)(3) tax-exempt organization.
The Arizona Corporation Commission website offers sample forms required to set up your non-profit organization with the State of Arizona. To form such a company, incorporators are required to fill out “Articles of Incorporation.” Though you can fill out Articles of Incorporation using the forms online, there are additional provisions required by the IRS for 501(c)(3) status in order to be approved as tax-exempt, which are not included in the Articles of Incorporation form offered by the state. By having an attorney draft the Articles of Incorporation, the attorney can make sure that all necessary provisions are included in the Articles of Incorporation filed with the state.
Entities can save themselves $60 in filing fees, plus mandatory publication fees, which otherwise would be required to amend the Articles of Incorporation if the 501(c)(3) provisions are not included. When filling out the 501(c)(3) application (IRS Form 1023), you are required to state where the applicable provisions are located within your incorporating documents. Failure to properly include these provisions are the number one reason that a 501(c)(3) application is rejected.
The Carroll Law Firm PLC offers free consultations to entities seeking non-profit status. Call us at (623)551-9366 to set up your appointment with an attorney today.
