Florida Corporations & Florida LLC's
To qualify for tax-exempt status, a business league may not be created for a profit venture and none of its net earnings may inure to the benefit of any shareholder or otherwise.
Business leagues are exempt from taxation under § 501(c)(6); Business leagues include chambers of commerce and real estate boards. To qualify for tax-exempt status under IRC § 501(c)(6), a business league must be an association of persons organized for the purpose of promoting a common business interest. The existence of a common business interest is dependent on whether the enterprise or activity promoted is actually a business and the membership of the organization has a common interest. Such interests include professions and mercantile or trading businesses.
The commonality of the business interest is an essential element to the set up of a 501c6. The common business interest requirement, like in the case of a business league, that focuses their course of business to a specific geographic area meets the commonality elemental requirement so far as the organization's intent is to better business environment in the specific area. Additionally, the commonality element will fail if the nonprofit corporation allows for particular business services to meet the individual needs of each member rather than promoting services that meet the common business interest of all members. .
Another essential element when setting up an IRS 501c6 nonprofit corporation is the improvement element; a business league's ''activities should be directed to the improvement of business conditions of one or more lines of business'.' Thus, to meet this element a business league's activities must be intended for improving general conditions. Activities that are not related to the business conditions or that meet an individual’s needs rather than the common needs members will not fulfill the improvement of business conditions element.
Next, a 501c6 business league may receive tax exempt status if it is ''not organized for profit and part of the net earnings of which inures to the benefit of any private shareholder or individual.'' Furthermore the restriction against private inurnment precludes members of a 501c6 business league from receiving direct or indirect distributions of the organization's profits.In running a 501c6 t you may not intentionally provide services to individual members of the nonprofit. In addition, the formation of the nonprofit is important for a successful business operation or IRS will likely conclude that exempt status is not available.
Business Activity?
In determining whether an organization caries on business of a kind ordinarily carried on by Non-profit enterprises, the courts and the IRS will view the commercial world to see if there is a for-profit purpose rather than nonprofit purpose in effect. If a for-profit purpose is determined to be in effect, then the organization will not qualify for tax-exempt status as a business league.
Primary Activity Test
To qualify as a business league, an organization must pursue exempt purposes as its primary activity. These exempt purposes include furtherance of a common business interest and improvement of business conditions in a line of business. If an organization's nonexempt activities are substantial, and not incidental, then it will not qualify as a business league under § 501(c)(6).n23A business league should expect problems from the IRS if the nonexempt revenues exceed about a 1/3. In determining this percentage, the IRS is likely to use numbers based on gross receipts. It must be known, the business league should expect IRS problems even if it makes no profit on the activity or actually suffers a loss.
Political Activities
A business league organized under §501(c)(6) may engage in any amount of political activity as long as these activities furthers or relates to the common business interests of the nonprofit. The permissible political activities include lobbying, efforts to promote or defeat legislation, support of or opposition to political candidates, and carrying on propaganda.
Business leagues are potentially subject to a tax as a political organization. The tax applies if a business league uses funds for the purpose of influencing votes for political office.
$195.00 FLORIDA NON PROFIT 501(C)(6)
YOUR NON PROFIT 501C6 CORPORATION WILL INCLUDE:
FREE REGISTERED AGENT *"STATE FILING FEES" AND ATTORNEY'S FEE. SERVICES FOR FLORIDA NON PROFIT 501C6 CORPORATION
Federal 501(c)(6) (TAX TIP)
For your Non Profit to be recognized as an authentic 501C6 organization you will need to register a Federal 501(c)(6) with the Federal Government. We will register your Federal 501(c)(6) for $2,250.00 Dollars. (this does not include the Federal filling FEE)
Independent Contract Agreement - (ASSET PROTECTION TIP) Special $55.00 with the purchase of a Non-Profit.
If you would like to 1099 a worker as an independent contractor without the worry of the IRS coming after you because of the workers failure to do their own tax withholdings, having an executed Independent Contractors Agreement is a must. Additionally, if vicarious liability (being sued because of a worker's negligent actions) is of a concern, again an executed Independent Contractors Agreement is needed. The cost for us to draft an independent contractors agreement is only $120.00 dollars at the time of incorporating
Unemployment Tax Account Number and new Hire Report
If you are going to be paying a wage state law requires you to have an unemployment tax ID to do your state withholdings and new hire report to report your new hires so to avoid penalties from the Department of revenue. The preparation fee for the Unemployment number paper work is $35.00 and there is a $30.00 fee to prepare 10 new hire reports.
Federal Tax ID Number
The Federal Tax ID Number is required to open a business account so that you can properly deposit the donated money received and to put your license into the corporate name. It is also necessary for those who need to get exempt form workers compensation insurance. The tax Id is only $35.00 dollars at the time of incorporation and we will acquire the actual number for your convenience.
Sales Tax ID Number ( For Resale )
If you are going to purchase products for resale you will need a Sales Tax ID Number. we can prepare the paperwork for $35.00 dollars or acquire the actual tax ID for $70.00 dollars.
Employment Agreement (ASSET PROTECTION TIP)
Asset protection in case of an unforeseen bankruptcy is often overlooked when thinking of an employment agreement in Florida. A well drafted employment agreement would allow a shareholder to protect his money by paying himself a wage as an employee and utilize the unlimited cash account exemption. After we draft your contract set up your wage account so that no interest will be credited to it (have any interest earned on the wage account either mailed directly to you or credited to another account), deposit only the wages of the statutory head of the family into that account, and include the designation "WAGE ACCOUNT" in the account title.
There are of course the important elements for new hired employees such as protecting your trade secrets and other intellectual property from being stolen without recourse as well a non-competition clause to seal off any attempt damage your business with your own ideas. Additionally, the beginning and ending dates of the employment period, the amount of the salary and time period it will cover, a description of duties and title for employees, agreed paid vacation days and severance pay are all inclusive. We will provide a specific agreement that entails all the above elements and more. This agreement is only $55.00 dollars at the time of incorporation.Indemnification Agreement (ASSET PROTECTION TIP)
It is very important to make sure that the Directors and Officers that you took the time to assemble be protected in case of a law suit by a third party or someone from your Company in the future when a Director or Officer steps down from the Company. Therefore, it is strongly recommended to have us register an indemnification in your articles of incorporation and draft a contract between the corporation and the the directors/officers for an important layer of protection. The fee for this work is only $65.00 dollars at the time of incorporating.
FREE Registered Agent Service
Our Law Firm has a vital and effective service that no entrepreneur at any level should be without. The Registered agent Service. The service includes: Our firms news letter, “The Business Tax Periodical”, which is available 8 times a year and offers legal information to help run your business without fear; our firm will examine your Uniform Business Report as well all other State corporation filing documents and file them timely and correctly for your business, this will ensure that your business remains in good standing with the state and business community. Our firm will help you keep up your ongoing minutes for your corporation's meetings so to avoid problems in case of a law suit or audit against your company; our firm will comply with all applicable laws and statutes relating to your businesses' Registered Agent and Registered Office.
Speed of service
We normally get you your documents in about 2 1/2 weeks. If you need your corporation completed quicker we have a same day incorporation for an additional $195.00 dollars and if you need to be incorporated next day it will cost an additional $150.00 dollars and $75.00 for 3 days.
There are some very important extra services that you should consider to allow for tax break and asset protection
DBA(fictitious name)
If you would like to have a secondary name to advertise your corporation under it is required to have what is called a DBA or fictitious name registered correctly under the corporation. We will have this registered with the required resolutions for only $120.00 dollars and it will be completed in 2 Weeks. We will expedite the process to same day service for an additional $225.00 ( DBA must be published once in the County where the business is located) 2 day service for $150.00 or 4 days for $75.00
Trademark
must. We can have your name Trademarked for $695.00 dollars, $350.00 extra for a logo and additionally we will perform the crucial due diligence (Trademark name searches) for $399.00 dollars and continue to monitor and keep up the formalities for $850.00 a year. The Search normally takes about two weeks, however the process can be expedited to Same Day completion for an additional $225.00, 2 day service for $150 additional and 4 day service for $75.00 dollars additional. With regards to the Trademark registration, normally 10 full months are necessary for the Federal Government to determine if the name will be awarded a Trademark.
Copyright (ASSET PROTECTION TIP)
A copyright gives the owner of a creative work the right to keep others from using the work without the owner's permission. Copyright protection may be applied for with regards to all original expressions, including art, sculpture, music, songs, choreography, crafts, poetry, flow charts, software, photography, movies, CD-ROMS, video games, videos, web sited and graphic designs. Copyright lasts for many years. Most often it lasts for the life of the work's creator (its author) plus 70 years. In cases where the creator is a business, the copyright lasts between 95 and 120 years. We will register your Copyright for $275.00 We can also get your immediate confirmation evidence for an additional $500.00
Vehicle Lease (ASSET PROTECTION TIP)
Do you use your vehicle for business purposes, if so a vehicle lease agreement is a tremendous tax break that you must not pass up. We will draft a vehicle lease for only $70.00 dollars at the time of incorporating.
Business Equipment Lease (TAX TIP)
Do you have office equipment, construction equipment or other expensive equipment that you would like to protect from a law suit and yet still receive a valuable tax write off. If so have us draft an Equipment Lease for only $135.00 dollars at the time of incorporating.
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