NY State and Federal Tax Exemption for your New York Nonprofit

Now that you created your New York nonprofit,  let’s discuss how your New York nonprofit can apply for state and federal tax exemption. After your New York nonprofit has held its first organizing meeting, you will need the continued assistance of an experienced attorney to file documents with the federal government and New York State. By this point, you should have already consulted an attorney about the formation of your organization and hopefully the attorney made sure that you have created an entity that the IRS will find qualifies for tax exemption. IRS Form 1023 (Federal Nonprofit) For the federal government, you will need to complete and file IRS Form 1023, which is a long and detailed form that asks for extensive information about your New York nonprofit’s organization, history, finances, structure, governance policies, operations and more. The IRS Form 1023 should be accompanied by appropriate supporting documents that your

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Registering Your New York Nonprofit For Fundraising Purpopses

If your New York nonprofit is fundraising in New York, then you may likely need to register with the New York Attorney General’s office. Before soliciting contributions from individuals, foundations, corporations or government agencies within New York, a New York nonprofit must register with the NY Attorney General’s General Charities Bureau, unless it falls within one of the many exceptions: Exceptions to the New York Nonprofit Filing Requirements Religious organizations or other organizations with a religious purpose (i.e., a religious school); Educational institutions that solicit contributions only from alumni, the student body, faculty, trustees and their families, and other educational organizations that report to or are chartered by the Board of Regents of the State University of New York are exempt; PTAs (Parent-Teacher Associations); Fraternal, patriotic, social or alumni membership organizations that limit their solicitations to its membership; Law enforcement support groups, veterans organizations, and volunteer firefighter/volunteer ambulance service organizations; Any

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NY Tips, Gratuities And Mandatory Service Charges Tax Law Basics: Rules for New York Businesses and Employees

New York businesses and its employees alike can both benefit from learning the rules for NY tips, gratuities and mandatory service charges. Many New Yorkers are tipped employees. Jobs where workers earn tips range from waiters and servers, to hotel employees and those who provide other services like delivery workers. In fact, part of the incentive for New Yorkers to take these kinds of jobs is the possibility that you may be able to earn more in tips than in straight wages. However, very few tipped employees and their employers understand all the applicable wage laws regarding tips, which can get complicated. First, let’s establish what is considered a “tip” or “gratuity” in New York. In its usual everyday meaning, a tip or gratuity is a voluntary payment over and above the charge for products or services (plus tax). Employers do not need to withhold additional funds for Social Security

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Business Groups Sue Over U.S. Government Crackdown on Corporate Inversions

Two business groups have sued the Obama administration over the government’s crackdown on U.S. companies moving abroad to reduce their tax burden.  The process is known as a corporate inversion. Also called a tax inversion, a corporate inversion is the practice of a corporation relocating its legal domicile to a nation with lower taxes like Ireland, Britain and Canada, while retaining its material operations in its higher-tax country of origin. Such a process is legal, but has drawn criticism from some politicians who say U.S. companies engaged in corporate inversions are avoiding their tax obligations. Inverting U.S. companies usually leave their core U.S. operations intact domestically, but transfer their legal tax domiciles abroad to the country of the acquired company. In April, the U.S. Treasury Department unveiled a package of rules intended to discourage inversions, and were specifically aimed at transactions involving non-U.S. companies. In creating these new rules, the

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IRS 501(c)(3) Organizations vs. IRS 501(c)(4) Organizations: New York Non-Profit Law Basics

We have clients at our law firm in New York operating non-profit businesses in New York that require advice on IRS 501(c)(3) vs. IRS 501(c)(4) organizations. We hope this and a few other articles we have will be useful for the reader. Whether your New York nonprofit should apply for tax exemption under IRS 501(c)(4) depends upon the type of organization you have and the political activities it may be undertaking. New York nonprofits that are civil leagues and local associations that further a social welfare objective, but do not quite meet the level of a charitable organization (religious, educational, charitable purposes), may pursue exemption under 501(c)(3).  For example, a local civic association, homeowner’s association, or the local Lions Club, are organizations that meet this description. New York nonprofits that wish to freely conduct political or lobbying efforts, gain support or opposition for political candidates or take action to pass or

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New York Small Business Taxes

Here are the basics of New York Business Taxes applicable to small businesses doing business in New York.  Please New York sole proprietorships do not pay any corporation franchise taxes or filing fees. The sole proprietor shall, only, pay state and federal personal income tax individually. New York partnerships are considered “pass-through” businesses where the income passes to individuals. New York partnerships do not pay federal or state income taxes, but are subject to state filing fees, which are calculated based on gross income. The effective maximum tax in New York is $4,500. New York limited liability companies can be classified as a partnership, a corporation or as a “disregarded” entity. New York limited liability companies that classify as a corporation pay corporation franchise tax under the same rules as traditional corporations. New York limited liability companies that classify as a partnership follow the same filing fee scheme as New

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