The process of filing for a non profit 501c3 tax exempt application is not as difficult as people make it out to be. A simple case usually doesn’t take too much time. However, even though it’s a simple process, there are quite a bit of steps associated with the filing of the 501c3 application. If you struggle with the filing process, then you can always consult an accountant.

An accountant can help you file for a non profit 501c3 tax exempt application. Moreover, many don’t know, but there are two ways to create a nonprofit organization. You can create a nonprofit organization by either creating an independent 501c3 or through a fiscal sponsorship.

Independent 501c3

Although creating an independent 501c3 isn’t an expensive process, it can, however, be a long and complicated process. In order to make the process easier, some consult an accountant to help them file these documents related to the filing of the Independent 501c3:

  • First, incorporate a nonprofit organization in that state you live in.
  • Second, create a set of regulations to govern your organization.
  • Third, apply for a non profit 501c3 tax exempt application
  • Fourth, apply for an employer identification number (EIN).
  • Fifth, submit your application to apply for a business license.
  • Lastly, after your nonprofit organization has been established, create a bank account.

If you think that you can fill out all of the steps mentioned above and don’t need to consult an expert, then you should go ahead and fill them out. However, it is advised that you consult an expert when filling out the IRS form 1023, as it is a lengthy and difficult form to understand. The expert will assist you in filing the form with the Internal Revenue Service (IRS). While, a fiscal sponsorship is another method that you can use to file for a non profit 501c3 tax exempt application.

Fiscal Sponsorship

Compared to the independent 501c3 filing method, the fiscal sponsorship is an easier and shorter filing method. It only takes an organization up to 4 weeks to establish themselves and get them approved. Furthermore, fiscal sponsorship is considered a hassle free method as it doesn’t require people to file and fill a lot of documents. In addition, organizations don’t have to deal with all the expenses needed of starting a nonprofit organization. Following are the steps involved in filling for a fiscal sponsorship:

  • You have to find a fiscal sponsor that’s willing to sponsor your nonprofit organization.
  • Then you have to fill out the sponsor’s application, which doesn’t take long to fill out.

One reason this method is better is that the sponsor takes care of all the details such as accounting, administrative services, and banking. Also, the sponsor even provides you to take advantage of the many facilities it offers you.

If you happen to get stuck on one of the steps associated with the two types of filing method, then you can always seek the counsel of an accountant. They can guide you through the filing process by helping you submit the non profit 501c3 tax exempt application.

If you need more information about our Florida accounting and tax services, please contact us at 407-502-2400.  Freedomtax Accounting’s staff has been providing honest accounting services and tax services for 15 years.  Our Orlando accounting and tax firm has its main offices in Kissimmee, FL.  Our services are provided nationwide, but mainly in the Central Florida market to areas like Orlando, South Orlando, Kissimmee, St. Cloud, Poinciana, Clermont, Davenport, and Hunters Creek, FL.  Our tax accountants and IRS enrolled agents (irs ea) specialize in corporate accounting and bookkeeping, tax services, tax preparation, back taxes help, tax debt relief, tax resolution, tax planning, itin numbers, incorporations, and non profit 501c3 tax exempt status applications.



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