Many neighbors join together to form a loose-knit group, for social reasons, community reasons or safety reasons. These groups start small and informal, and satisfy their beginnings. Often times these neighborhood groups grow, choose a name, gain funding, and open a bank account in the name of their organization. The group pays little attention to their definition by government rules and regulations – until – they receive notice that their organization has been ruled a tax paying business. In California, that means that this group of neighbors, now owe franchise tax – a minimum of $800.00 per year, regardless, of whether or not they desire to conduct business, have made any profit, or have money in their bank account. They owe the taxing agency a bunch of money! Having suffered this experience first-hand; I implore you to BEWARE! In the following presentation, the SNC offer some simple, not too expensive ideas to avoiding this dilemma. Becoming a tax exempt organization, can save you money and some headaches – if your organization waits to be found by the IRS or the California FTB. Watch the following slide display.
View This Video Slideshow By Eagle Bison Neighborhood Association For Full Story