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Spring 2009 Convention Inter - Chapter Luncheon Steps to Incorporation

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Spring 2009 Convention Inter - Chapter Luncheon Steps to Incorporation. To Become a Chapter then…. Chapter Name By Laws Federal Employer Identification Number (EIN) Bank Account Chapter Charter. To Become a Chapter NOW…. Chapter Name By Laws Federal Employer Identification Number (EIN)

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Spring 2009 Convention

Inter - Chapter Luncheon

Steps to Incorporation

to become a chapter then
To Become a Chapterthen…
  • Chapter Name
  • By Laws
  • Federal Employer Identification Number (EIN)
  • Bank Account
  • Chapter Charter
to become a chapter now
To Become a ChapterNOW…
  • Chapter Name
  • By Laws
  • Federal Employer Identification Number (EIN)
  • Bank Account
  • Chapter Charter
  • Incorporate in Your State
  • Apply to IRS for Non Profit 501 (c) (6)
chapter name
Chapter Name
  • International Concrete Repair Institute – North Texas Chapter


  • Arizona Chapter of the International Concrete Repair Institute
by laws
By Laws
  • Details about operations
    • Name
    • Object
    • Members
    • Officers
    • Meetings
    • Executive Board
    • Committees
    • Authority
    • Amendments
  • Federal Employer Identification Number (EIN)
    • Obtained by IRS form SS-4
  • Bank Account
    • A checking account in the chapter’s name
  • Chapter Charter
    • ICRI National Approval of Chapter
the 990 change
The 990 Change
  • Why the change at the IRS?
    • IRS wants to know what’s going on inside nonprofit organizations
    • To file you must be a 501(c) (6) organization
    • ICRI is
    • Chapters are not
organizational problems
Organizational Problems
  • What happens if we are not a non-profit?
    • You should be paying taxes like any other corporation
  • Aren’t we under ICRI’s exemption?
    • No, Each chapter a separate legal organization. No group exemption.
step one incorporate
Step One - Incorporate
  • Incorporate with your state
    • Every state has different processes, forms, paperwork
    • Prepare Articles of Incorporation
    • They are rules governing the management of a corporation
    • The Articles of Incorporation introduce your organization to government agencies
    • Your By-Laws are designed to introduce your organization to the members they serve.
step one incorporate1
Step One - Incorporate

A corporation's Articles of Incorporation generally provide information such as:

  • The corporation's name, which has to be unique from any other corporation in that jurisdiction.
  • The name of the persons organizing the corporation, usually members of the board of directors.
  • Whether the corporation is a stock or non-stock corporation – CHOOSE NON-STOCK
step one incorporate2
Step One - Incorporate
  • Whether the corporation's existence is permanent or limited for a specific period of time.
  • A corporation must state the purposes for which it is formed. Some jurisdictions permit a general statement such as "any lawful purpose" but some require explicit specifications.
step one incorporate3
Step One - Incorporate
  • Example: The corporation is organized exclusively to promote a common business interest and improve business conditions of a line of business with the meaning of Section 501 (c) (6) of the IRS Code of 1986. In furtherance of these purposes, but not by way of limitation, the purpose of this organization is the promotion of higher business standards, better business methods and improvement of business conditions in the concrete restoration, repair and protection industry through the education of its membership.
step one incorporate4
Step One - Incorporate
  • If a non-stock corporation, whether it is for profit or non-profit.
  • In the United States, if a corporation is to be organized as a non-profit, to be recognized as such by the IRS, such as for eligibility for tax exemption, certain specific wording must be included stating no part of the assets of the corporation are to benefit the members.
  • The names of the corporation's current Board of Directors.
  • The location of the corporation's "registered office" - the location at which legal papers can be served to the corporation if necessary. Some states further require the designation of a Registered Agent: a person to whom such papers could be delivered.
step one incorporate5
Step One - Incorporate
  • File the Articles of Incorporation with the appropriate state officials or agency to be recognized as incorporated.
  • You will need your By-Laws and approved Articles of Incorporation to be filed along with your Form 1024 in order to be recognized under section 501 (a).
form 1024
Form 1024
  • Apply to become a non-profit with IRS
    • Form 1024 (19 pages)
    • Articles of Incorporation
    • By-Laws
    • Form 8718
  • IRS will issue a Determination Letter
form 10241
Form 1024
  • Form 1024 is 19 PAGES!!!!!!!
  • Worry about pages 1-5 and 9 only.
form 10242
Form 1024
  • Part I
  • First choose (d)
  • Section 501 (c) (6)
  • Business leagues, chamber of commerce, etc.
form 10243
Form 1024

Starting with number 1

  • Name
  • President’s name
  • Address
  • City, State and Zip Code
  • Web site (if applicable)
form 10244
Form 1024
  • EIN #
  • Name and phone
  • End of accounting period
  • Date of incorporation
  • No
  • No
  • Choose option A – Corporation

- end of page 1 -

form 10245
Form 1024

Part II

  • Narrative Description of Activities
    • Type of event
    • Purpose of event
    • General frequency of this type of event
    • Where held (be general, no single location or specific)
    • Who conducts the event (by the Board members, etc.)
form 10246
Form 1024

Part II

2. List sources of financial support

  • Event fees
  • Event sponsors
  • Dues
  • Ad revenue from newsletters
  • Other sources

- end of page 2 -

form 10247
Form 1024

Part II

3. (a & b) Provide a list of Officers and Directors

Include name, address, title in chapter organization and compensation - Zero

4. Not applicable

5. List the International Concrete Repair Institute

6. The chapter has no stock

form 10248
Form 1024

Part II

7. Types of Members

Member of the chapter are members of ICRI.

Include types of members and number

General Member, students, lifetime, honorary, etc.

8. Dissolution – use statement from By-Laws

- end of page 3 -

form 10249
Form 1024

Part II

9. No – we are non-profit

10. No – the group goes not charge for their services

  • No payments to shareholders
  • No, the chapter does not provide insurance
  • Not under supervision
  • Property lease – you can mention rentals of space for meeting, but only if you have a contract
form 102410
Form 1024

Part II

15. No political influence

16. Attach copies of a few recent newsletters or communications to members regarding upcoming or planned activities.

- end of page 4 -

form 102411
Form 1024

Part III

Statement of Revenue and Expenses

Basic information that is the same as the financial reporting for ICRI and Chapter Awards forms

- end of page 5 –

form 102412
Form 1024

Pages 6 through 19 are all for a varies of other organizations filing under Section 501 (a)

C9’s C4’s, C7’s, etc.

On Page 9 you can refer back to

Part II, Question 1 – your narrative regarding types of meeting and events you provide the members

the best advice
The Best Advice…
  • Talk to your professional (Lawyer/Accountant)
    • Non-profit experience a plus

I have the name and number of a great firm that is willing to work with you on this process. There may be some issues with certain states, but it will be discussed up front.