[Talk-us] Incorporation

[Serge Wroclawski]

On Fri, Dec 4, 2009 at 12:54 PM, Andrew Ayre <andy at britishideas.com> wrote:
> I took Serge saying:
>
> "As discussed, we can incorporate as a corporate entity, get our EIN, and
> then work on the non-profit part"

I guess my shorthand wasn't clear.

Registration as a corporate entity is a separate step from tax
exemption and they're always done as two steps (since there's a
waiting period for non-profit entities anyway).

We can begin this process by registering as a corporate entity (which
would us to open a bank account, get funds, get a board together,
etc.) while we work on the task of getting our articles of
incorporation ready for approval.

The only difference will be that the organization won't be tax exempt.

It's true that for normal for-profit corporations, the tax laws in
Delaware make it very attractive to register in.

The same isn't true for non-profits. Instead the issues for
non-profits are about qualifications and procedures that non-profits
must follow.

DC is known as being very non-profit friendly (low requirements for
registration, paperwork, filing, etc.) That's probably due to a
combination of non-profit legislation and the fact that DC is home to
such a large number of non-profit entities.

That's also not to say we won't have to keep very close tabs on our
accounting, but that the number and complexity of the hoops to go
through for our final registration are fairly low.

- Serge