Every day, individuals are inspired to start a nonprofit and serve the Missouri community. However, forming and maintaining a nonprofit corporation in Missouri presents an array of action items that many neglect or ignore all together. Here is a brief overview of key considerations to help get your nonprofit off the ground.
Select how the nonprofit will be structured and identify your board of directors:
Prepare appropriate governing documents for the nonprofit:
Remember that the formation of a Missouri nonprofit does not make the nonprofit tax-exempt for federal and Missouri income tax purposes. A nonprofit seeking federal and Missouri tax-exempt status under IRS Code section 501(c)(3) must file an application for tax-exempt status with the IRS (IRS Form 1023). A nonprofit that is determined by the IRS to be tax-exempt under IRS Code section 501(c)(3) is also exempt from Missouri corporate income and franchise taxes.
Nonprofits may also seek an exemption from Missouri sales tax and/or property tax depending upon the nature of their operations and activities. Separate applications must be filed with the Missouri Department of Revenue for sales tax exemptions and the applicable county assessor for property tax exemptions. In addition, nonprofits that conduct fundraising activities in Missouri and other states may be required to register with those states in order to solicit charitable contributions.
Given the nuances in the Missouri Nonprofit Corporation Law and complexities with preparing legal documents for nonprofits, be sure to consult an attorney early in your formation process.
Greg Mennerick is a partner in Thompson Coburn’s Corporate & Securities practice. You can find Greg on LinkedIn, and reach him at (314) 552-6542 or email@example.com. Jesse Doggendorf is an associate in Thompson Coburn’s Corporate & Securities practice. You can find Jesse on LinkedIn, and reach him at (314) 552-6129 or firstname.lastname@example.org.
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