Applying for tax exempt status is crucial in maintaining a successful nonprofit organization. Before you can claim exempt status, you must first incorporate your nonprofit business. In the state of Colorado, you can incorporate your business by visiting the state website and submitting a form. After doing so, a few simple follow-up steps such as filing tax paperwork and registering your business with the state, is all you have to do to become an incorporated nonprofit business.
Select a name for your corporation and file an Articles of Incorporation form with the state of Colorado. The form is available at, www.sos.state.co.us. A filing fee of $50 is charged.
File for federal tax exempt status with the IRS. The required forms are available at www.irs.gov/charities. The filing fee is expensive, averaging around $750.
File for Colorado state sales tax and and corporate income exemptions. These forms can be found at www.revenue.state.co.us. There is no filing fee to file for tax exemption within the state of Colorado.
Register with the Colorado Secretary of State before engaing in any campaigns or soliciting donations. Registrations can be done online at www.sos.state.co.us at no charge.