We did contact the IRS and we talked to a lady out of the Baltimore office that actually spoke at the PTO show in Philly, PA in April. She informed us that once you have a number and your established as a unit you never want to have to start over again and for us to keep the same number. She told us to do a name change on our Incorp. papers and to fill out the papers with the federal and pay the 500.00 to be pulled out from the umbrella of the PTA. She explained to us that even though we were under an umbrella with the PTA, we still had our own federal id tax # and noone else had that same #. So filling out those papers would pull us out from that umbrella with the PTA. It wasnt an easy process, but we are almost all done with it.
Melindah--I would be very concerned about using the same tax ID number; I'm really wondering if something wasn't done quite right in your case. If you started a brand new corporation, I just can't imagine what circumstance the IRS would have for recycling an EIN. I guess if you have had it for a few years now and there hasn't been any problem, I wouldn't worry about it. But if you're pretty new, I would go back to the IRS and make sure that this isn't going to create confusion down the line.
Melindah's PTO had no trouble reusing their old tax id number, but if I were in your shoes, I would get a new one. There is no cost and it can be done over the phone. Download form SS-4 from www.irs.gov/forms
and then call in the info to the IRS. The IRS's system links the old tax id # to the PTA's name. It must be easier to get a new number than to try to find all the places the information needs to be updated. You are creating a brand new organization, even if it doesn't feel like it. Keep it clean and start fresh with a new number. Close the old bank account and open a new one with the PTO's own id #.
And definately consider incorporating before filing for your 501c3. In our state, it was cheap, easy and fast. Didn't require outside assistance. Check your state's website for advice.
You should incorporate to protect your officers. You do not need to get a new federal ID tax #. As a former PTA we just switched to a PTO and all you need to do is contact the federal government and they will send you a packet to fill out and you will need to either send a check for $500.00 or $100.00 depending on how much your units income is. But we continued to keep the same federal tax id #. If you are thinking of becoming incorporated, some advice, do that before you fill the papers out for the federal. All the federal is going to do is remove you from that umbrella of the PTA, but your # will remain the same. Hope this helps ya out.
Yes, you definitely need a new tax ID number. And you should file for tax exempt status, as well. The tax id number you have now is linked to the PTA's tax exemption; you will be an entirely different legal entity and can't piggyback off the PTA stuff. And don't forget to check the existing PTA bylaws for the proper procedures to disband (I think there's another active thread on that topic now).
The biggest advantage of incorporating is that it protects your officers from being held personally liable in any action against the PTO. You need to contact your state corporations office to find out how to go about incorporating. It's usually not too hard, but if you have a parent who is a corporate attorney to run all this by, it will make your life a lot easier.
It's definitely worth joining the NPN to get the manual on PTO start-up. All this and more is very well explained.
Hi-we are converting to a PTO from a PTA and I'm wondering if I need to apply for a brand new Tax ID # to open a new bank account? I'm assuming we do but have been getting conflicting answers from the banks in our area... Also, do we need to file for tax exempt status?
Is there any reason that we need to Incorporate? One of the banks told me we did but I didn't think we were a corporation.. Any assistance would be appreciated. [img]smile.gif[/img]
but we are almost all done with it.