Massachusetts 501c3 Corporations: Tax Exempt Organizations Non Profit

Massachusetts 501c3 Corporations: Tax Exempt

The purpose of non profit organizations like 501c3 Corporations is to serve the interest of the public. This service is usually for mutual benefit and not for the accumulation of profits by the organization. The state regulates the types of organization allowed. These corporations are mostly tax exempt.

Forming a Non Profit Organization in Massachusetts

The state of Massachusetts offers three types of service by which to incorporate non profit organizations: Standard, Exclusive and Non-Resident. Applicants must first read and understand the criteria set out by the state to qualify for non profit status before making their application. The application process involves a few simple steps:

• Choosing a name: Applicants must choose a name that is unique and not registered in the Secretary of State record of names.
• Directors: The non profit organization must have at least one director who may or may not reside within the state.
• Incorporate the Organization: This entails completing application forms requesting information such as the name and purpose of the organization, its directors and bylaws of the organization.
• Employer Identification Number (EIN): This gives the organization permission to employ individuals and enter into leases.
• Register with Attorney General: This gives permission to solicit funding from the state and from private sources.
• Apply for Tax-exempt Status: Once you have received certification as a non profit organization, you apply to the IRS for the organization’s tax-exempt status under section 501 (c) (3) non profit tax-exempt status. This status grants many benefits including shielding directors of the organization from any claims or liabilities incurred by the organization.

For more information

• Non profit overview
• Is a 501c3 right for you?