Both for-profit and non-profit businesses or organizations can incorporate within the state of Washington. However, there are large differences in how they are regulated and taxed. Non-profit corporations are charitable or educational organizations that have a humanitarian or social mission. To maintain their tax-exempt status, non-profit organizations must meet a strict set of legal requirements. Dickson Frohlich has the expertise in non-profit law to give you the counsel you need.
Non-Profit Corporations: Legal Issues
- Federal tax status. If a non-profit corporation is planning to apply for 501 (C) tax-exempt status, this needs to be included in the Articles of Incorporation. There must be a specific purpose clause, as well as a dissolution of assets provision.
- Fundraising. Non-profit corporations that intend to raise funds from the public will also need to be registered with the Charities Program through the Secretary of State.
- Department of Revenue. There are certain exemptions that may apply to non-profit corporations under Washington state laws through the Department of Revenue. These exemptions must be applied for, and certain stipulations must be met.
Non-profit corporations must seek legal advice to avoid pitfalls in starting and running their organizations. Non-profit organizations carry potential personal liabilities and must meet strict regulations regarding by-laws and record keeping. Non-profits are scrutinized for their use of funds and must maintain professional accounting practices. Expert legal counsel from Dickson Frohlich can ensure that all documentation meets the standards set by the state, and prevent complications down the road. In addition to our team of experienced business law attorneys, we have two accountants on staff to assist you in meeting all regulatory and accounting requirements.
Before Starting a Non-Profit Corporation, Call Us for a free Consultation
If you are in the process of incorporating a non-profit, let us assist you in creating the articles of incorporation and other documentation needed to begin your enterprise. Our attorneys have over 100 years of combined experience serving non-profit organizations in the Seattle and Tacoma area. We understand the intricacies of Washington state business laws and can help ensure that the process transpires smoothly. We would be more than happy to discuss your options in a FREE phone consultation, at your convenience. Give one of our offices a call today!
You can reach us at our Seattle office at 206-621-1110 or in Tacoma at 253-572-1000