If you are not charging for your services, you are volunteering them, which cover already with the not-for-profit company you are working with. The IRS laws states, that for a company to be a business it must make  a profit or attemp to make a profit. If you are charging how will you make a profit?

If you are not charging for your services, you are volunteering them, which is covered already with the not-for-profit company you are working with. The IRS laws states, that for a company to be a business it must make  a profit or attempt to make a profit. If you are not charging how will you make a profit?

As stated - why not keep it for - profit - especially as you might want to consider making business out of it when you graduate? The IRS puts out a lot of information regarding filing for and running a non-profit - visit their site - http://www.irs.gov/charities/ Not sure about your state - but what usually happens is that when you receive your 501(c)(3) - you submit that to the state and they also exempt you.

I would NOT register your on line forum as a non profit. Even though it sounds good BUT it will not pay off now (cheapst non profit will cost your around $700-$1000 to register). Instead i would go to the local court and get a DBA and EIN # for $10-$15 . This will have a bigger ROI. Once you get the EIN # you can use that for Google adsense or what ever will be your income source. Hope it helps.

justinjett - The process of registering a non-profit organization is not that different from the steps for-profit businesses take. One additional task non-profits face is applying for their tax-exempt status - which is generally seen more as a benefit than as a burden. For details on How to Start a Non-Profit, please read this article on Business.gov.

If I were to apply for an EIN as a Sole Proprietor could I late register as tax exempt under 501(c)(3)? Also, is it expensive to register for 501(c)(3) status? Where could I find this information. There are a few development programs available for me that would help me with my business, i.e. running the web server. They are free for people with 501(c)(3) status.

There's a great article from About.com on registering a 501c3 right here.   Here's a link the the IRS website on the application process as well.   The cost for registration will vary based upon your state of residence.   Just do a Google search on '501 c 3 application + (insert your state name here)'

I agree with this poster. If you are not charging a fee, you will not make a profit and there will be no tax liability. Why forclose the posibility of generating a profit if you choose down the road. Larry, trade show display -- This post was edited to remove a commercial link. Read our discussion policies for more Community best practices. Message Edited by NicoleD on 01-22-2010 01:16 PM

I had found out that for a company with less than $10,000 in gross reciepts it was a $300 filing fee. I also would have to create bylaws etc. I decided to create a for profit business. I have currently received an occupancy letter and EIN.  I even was able to open my SAM's club business plus account with just the business letterhead. Since I usually enjoy doing business purchases early this was a plus. Thanks for all the help.    

Justinjett - Congrats! It sounds like you are well on your way. We hope you can continue to use the Community to ask questions as your business starts up. Now you'll be able to give advice to others as well! Best of luck to you. Thanks everyone for jumping in with your feedback!