How to Obtain 501(c)(3) Status for Your Corporation

Applying to the Internal Revenue Service for tax-exempt status can be complicated. The IRS estimates that the application process takes over 60 hours. This article is not meant as a definitive guide

An initial consideration for an organization is whether the purpose for which your organization exists is one for which the tax laws allow exemption. Generally, an organization may qualify for an exemption from federal income tax if it is organized and operated exclusively for charitable, religious, educational, scientific, or literary purposes.

The applying nonprofit entity needs to be formally established, such as a corporation or limited liability company (LLC) with articles of incorporation or organization. An Employer Identification Number is required. Organizational bylaws should be adopted.