Mcdonough, GA asked in Business Law for Georgia

Q: What happens if you don't file a notice of incorporation when starting a nonprofit?

Related Topics:
1 Lawyer Answer

A: First and foremost, if you are planning on operating a non-profit organization or not-for profit corporation you must file the incorporation documents with the Georgia Secretary of State's Office or your the equivalent in you state. Additionally, you will need to file for the non-profit designation with the IRS via Form 1023 or Form 1023EZ. Just because you claim to be non-profit, does not mean you are and you can only labeled as one through the proper recognition by the IRS.

Failure to do so will expose you to unnecessary legal risks that include the following: making serious business mistakes, personal liability exposure, adverse tax consequences, business and securities law liability, criminal liability, and high legal and attorney fees to have a law firm fix the legal mess that you created.

It is highly recommended you consult with a business attorney. There is no remedy for bad information and do it yourself legal representation can result in disaster!

Justia Ask a Lawyer is a forum for consumers to get answers to basic legal questions. Any information sent through Justia Ask a Lawyer is not secure and is done so on a non-confidential basis only.

The use of this website to ask questions or receive answers does not create an attorney–client relationship between you and Justia, or between you and any attorney who receives your information or responds to your questions, nor is it intended to create such a relationship. Additionally, no responses on this forum constitute legal advice, which must be tailored to the specific circumstances of each case. You should not act upon information provided in Justia Ask a Lawyer without seeking professional counsel from an attorney admitted or authorized to practice in your jurisdiction. Justia assumes no responsibility to any person who relies on information contained on or received through this site and disclaims all liability in respect to such information.

Justia cannot guarantee that the information on this website (including any legal information provided by an attorney through this service) is accurate, complete, or up-to-date. While we intend to make every attempt to keep the information on this site current, the owners of and contributors to this site make no claims, promises or guarantees about the accuracy, completeness or adequacy of the information contained in or linked to from this site.