I am all about the path of least resistance! Looks like we'll be incorporating! Thanks for your help!!

I don't believe the IRS grants tax-exempt status to LLC's formed by individuals. (The exception, as I understand it, being LLC's where the participants are existing nonprofit corporations.) From a quick look at the Texas Secretary of State's website, it looks like Texas doesn't recognize LLC's as nonprofit, either. I'd strongly recommend speaking with a local attorney with experience working with nonprofits if you really want to go in that direction.

Good luck, and best wishes for your new PTO!

Hello again,

In our earlier discussion I asked about incorporating a non-profit. Would I be better off incorporating or applying for Limited Liability Company? According to the below website LLC looks like the better option.

www.incorporate.com/comparing_corporations_llcs.html

Here are my options:

Certificate of Formation for a Nonprofit Corporation - Form to be used to incorporate a nonprofit corporation. Rev. 05-11 (# of pages - 8) (Word, PDF)

Certificate of Formation for a Limited Liability Company - Form to be used to form a limited liability company. Rev. 05-11 (# of pages - 6) (Word, PDF)

Thanks,
Ryane Postell

You would fill out the nonprofit form. Nonprofit simply means you won't be distributing profits to shareholders. 501c3 doesn't make you a nonprofit (you already are) -- it officially gives you tax-exempt status. Those two things often get confused -- you're not alone! Good luck with the applications.

If you haven't seen it, we offer a a PTO Startup Guide that, among other things, walks you through the form 1023 (application for 501c3) question by question. It really does make the process a lot easier.

www.ptotoday.com/startup-guide

I am in the beginning stages of applying for 501 (c)(3) status. I need to incorporate my PTO in Texas before applying for non-profit status, right? I have found this website www.sos.state.tx.us/corp/forms_boc.shtml#fbenc
but I am not sure which form I pick. I am wanting our PTO to become non-profit, but as of yet we are not. Does this mean I pick the for-profit form to fill out? If someone could take a look at the website and tell me what form to fill out I'd be grateful! If you have another option to offer, that would be great! Any help is appreciated! Thank You times a million!

Thank God I have a business degree or else I'd be lost! LOL ;-P

Thank you,
Ryane