non-profit legal entity

Establishing a non-profit organization in Carroll or Baltimore County involves filling out specific forms, meeting different requirements, and other dealings with the Internal Revenue Service (IRS). Legal guidance is often necessary to avoid the hurdles and challenges that often come with not-for-profit business.

With experience in both business law and tax services, Maryland non-profit lawyer DK Rus can help you through the formation of your tax-exempt organization and provide the legal guidance you need to manage your non-profit efficiently as it grows.


Laying the Foundation for Your Non-Profit's Success

It can be confusing and time-consuming to apply for recognition of tax-exempt status for your organization. Just determining which type of tax-exempt organization is best for your proposed activities can require the uninitiated to spend hours trying to decipher and understand complex provisions of the Internal Revenue Code and regulations.

Then there’s the application itself, which includes more than twenty-five pages of questions, requests for information, and descriptions that can sometimes seem to be written in a completely different language.

The IRS estimates that completing and filing the Form 1023 (including gathering data) should take approximately 26 hours—plus up to 150 hours of record keeping. Many people find that estimate to be woefully inadequate, and will spend double or even triple that time on the task.

When you finally complete it the best you can, and file it with the IRS, you have to wait months for an answer, only to often be told that your application was insufficient and further information and action is needed. With DK Rus Law, you’ll get the effective guidance you need to save time and effort in overcoming the hurdles that are often present when starting a Maryland non-profit organization.

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Helping You Get Your Non-Profit Started

Here are just a few of the necessary steps to starting a non-profit organization in Maryland that DK Rus can provide legal assistance with:

Determine which kind of tax-exempt organization is best for your proposed activities. For example, should this be a 501(c)(3) public charity, a private foundation, or a supporting organization? In addition, you will need to determine whether to apply for an advance or a definitive ruling.

Form a Maryland corporation, with appropriate 501(c)(3) provisions. (This requires filing fees to the State of Maryland of approximately $220.00, if using expedited service.) You should incorporate the appropriate language or the entity will have to pay annual personal property taxes of $300 per year. During this step, you will also obtain an Employer Identification Number (EIN)

Choose who will sit on your board of directors. Draft and execute by-laws and necessary consents (e.g., conflict of interest policy, elections of initial board, etc.)

Complete and file Form 1023, which involves financial information and detailed descriptions of proposed activities, including fundraising activities. File the completed form along with a check in the amount of $400.00 (assuming expected revenues are no more than $40,000) or $850.00 (for expected revenues in excess of $40,000) with IRS.

File for a certification letter from the State of Maryland (registration statement on Form COR-92 and Form COF-85 (Financial Form)).

Serving You So You Can Better Serve Your Community

Don’t let the legal process of starting a non-profit intimidate you. When you work with a non-profit attorney in Baltimore or Carroll County, you’ll get the guidance you need in choosing an ideal structure for your organization and qualifying for a specific tax status. DK Rus is here to walk you through the process and ensure your non-profit follows necessary regulations, giving you confidence for your business’s future. 

Get Started with a FREE Consultation from DK Rus Law

Whether you're considering establishing a non-profit organization or need legal business advice in Maryland, DK Rus can help.
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