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990 EZ Requirement?
State Income Tax
Must file- $0
Sales Tax Exemption
Included with state tax
All organizations (except those classified as churches) are required to file an annual 990 form (990N, 990EZ, 990, or 990PF) to be exempt from Income Tax.
The 990 return is due on the 15th day of the 5th month after the end of the organization’s fiscal year.
Failure to file for 3 consecutive years could cause your organization to lose tax-exempt status.
Nonprofit Corporations Vs. Unincorporated Nonprofits
If you have an unincorporated group of at least three people who are joined for the same nonprofit purpose, you could be considered a Texas nonprofit. Not all nonprofit organizations in Texas are required to file with the state.
Many nonprofits, however, do choose to incorporate with the state. This is done by filing a certificate of formation with the secretary of state in accordance with the Texas Business Organizations Code. This is not the same as filing for tax exemption.
Texas Nonprofit Tax Exempt Form
If you want to apply for tax exemption for your Texas nonprofit, there are a number of steps you need to take.
- Name your nonprofit
- Appoint a Texas registered agent
- Appoint board members and officers
- File your Texas certificate of formation
- Draft bylaws and a conflict of interest policy
- Have at least one organizational meeting
- Get an employer identification number
- Apply for and receive 501(c) or 501(c)3 status
Once you have your IRS determination letter, you can file your Texas nonprofit tax exempt form, which will excuse your organization from having to pay sales tax, franchise tax, or hotel occupancy tax.
Texas Registered Agent
A Texas registered agent is a designated person to receive any process, notice, or demand submitted to the organization. It can be a person outside of the organization, as nonprofits often change locations, especially when they’re new, so this person at a single address can receive important documents the whole time.
Unincorporated nonprofits don’t have to have a Texas registered agent, but they are allowed to. But for incorporated organizations, it is one of the nonprofit requirements in Texas.
If you’re looking to start a Texas nonprofit and you need some help understanding the forms, or if you already have one and you want to stay compliant, BryteBridge Nonprofit Solutions can help. We’re experts in the nonprofit process, having helped thousands of organizations across the country. Let us help you help others. Call now and set up a consultation with our team today.