Re: Incorporation Process

[Mark A. Miller]

Troy C. Belding wrote:
Mark wrote:

The purposes for which the corporation is organized are exclusively
 for social, scientific, and educational purposes,
The reason I note this is that scientific and educational purposes 
are allowed under a 501c3, but a social purpose, one must file 
under a 501c7. Basically, apparently that section needs to be 
re-written. That's about the only one, really.

Oh, I was pretty sure it'd have to be modified slightly.   And no, 
social is fine for 501(c)3.   You can also drop that out.  I haven't 
looked at it much lately.
Eh, if you say so. IRS Publication 557 states:

(Under 501c3)

An organization may qualify for exemption from
federal income tax if it is organized and operated
exclusively for one or more of the following purposes:
   1) Charitable
   2) Religious
   3) Educational
   4) Scientific
   5) Literary
   6) Testing for Public Safety
   7) Fostering national or international amateur sports competition            
      but only if none of its activities involve providing athletic
      facilities or equipment; however, see Amateur Athletic                    
      Organizations, later in this chapter
   8) The Prevention of Cruelty to children or animals
And later on in the section:

Example 8. An organization that is expressly empowered by its articles
to carry on social activities will not be sufficiently limited as to its
power, even if its articles state that it is organized and will be
operated exclusively for charitable purposes.
Just made me leary about leaving the "social" bit in.

The other thing I noted was that while three directors are required
 to be named, only one person is actually needed to sign and be the
 incorporator.
Hmm - that's not quite right.  It took three of us to incorporate, 
unless they changed it.
They have, apparently. At least the base form states only one person is
necessary.
And also, at: http://www.sos.state.tx.us/corp/forms/filingguide/html/np.htm

---

7. Incorporators

a. The articles should state the name and street or post office address 
of each incorporator. Only one incorporator is necessary for a 
non-profit corporation, but each incorporator listed must sign the articles.

Then we need to submit papers to the Texas Comptroller of Public 
Accounts after we get exempt status from the IRS to get exempt from
 state sales tax.

Process is Secretary of State, IRS, then Comptroller. (I think you 
can do the comptroller first, as being exempt from state sales tax is
a different process from income tax)
Apparently the Texas Comptroller wants a copy of the IRS determination 
letter.

http://www.window.state.tx.us/taxinfo/taxforms/ap-204.pdf

There was still an issue on whether or not we wanted to use 
Paypal/Yahoo Stores/some other thing. Yahoo Stores I would 
basically rule out, the per transaction fee is typical (2.25% or 
so, plus $.30 per transaction fee), but then they want a minimum of
 $40 a month fee, at least. Paypal is about the same on the
charges, but no monthly fee. The one thing I wondered about though
was whether we wished to just establish a merchant account to allow
 online transactions, and then during the registration at the 
convention, allow Visa/Mastercard payments there. Just a thought to
 entertain.
--
Mark A. Miller
[EMAIL PROTECTED]
(512) 796-3592