staceyobu Posted May 2, 2018 Share Posted May 2, 2018 I am starting a homeschool co-op this year. I have a leadership team helping me that could be a "board". Our goal is to zero out money... essentially just take in enough to pay for the building rent and supplies. We are not paying teachers or anyone else any money. I've looked at getting a 501c3. It looks like several hundred dollars of fees. Does that last forever? Or do I have to pay that again every year? Is it necessary for me to get this? How much do I need the protection? DH wants to open a business bank account for the money to pass through. I'm collecting the building fees and then writing a check for the rent. All of this seems to cost hundreds of dollars that we don't really have. I also don't want to put us at unnecessary risk. Quote Link to comment Share on other sites More sharing options...
klmama Posted May 2, 2018 Share Posted May 2, 2018 You might want to take a look at this site and materials: http://homeschoolcpa.com/ Quote Link to comment Share on other sites More sharing options...
Bootsie Posted May 2, 2018 Share Posted May 2, 2018 You can be a non-profit organization without being a 501c3. A 501c3 is a charitable organization; as such it can accept donations for which the donor receives a tax deduction. You only pay the fees once to become a 501c3. What particular risk are you concerned about? Quote Link to comment Share on other sites More sharing options...
staceyobu Posted May 2, 2018 Author Share Posted May 2, 2018 1 minute ago, jdahlquist said: You can be a non-profit organization without being a 501c3. A 501c3 is a charitable organization; as such it can accept donations for which the donor receives a tax deduction. You only pay the fees once to become a 501c3. What particular risk are you concerned about? I guess if a kid gets hurt or we manage to piss someone off and they sue. Is there a way I can limit them coming after me individually? Quote Link to comment Share on other sites More sharing options...
catz Posted May 2, 2018 Share Posted May 2, 2018 Our co-op has always carried liability insurance. We are a 5013c organization. But we didn’t become one until a number of years after forming. Quote Link to comment Share on other sites More sharing options...
Carrie12345 Posted May 2, 2018 Share Posted May 2, 2018 We don't have our 501c3 yet, though we're planning to shortly. This year was a giant experiment that, fortunately, went well, and now we know how our finances shake out! We did immediately register as a non-profit. We want the 501c3 to be eligible for additional fundraising sources. Quote Link to comment Share on other sites More sharing options...
mom2att Posted May 2, 2018 Share Posted May 2, 2018 You fill out the paperwork, pay the fee and file one time. After that, it renews automatically every 5 years, provided you have filed your 990 form every year with the IRS and kept your corporation status with your state (that's what will have an annual filing cost--ours is about $70/year). You need an EIN to open a bank account in the co-op's name. Liability insurance is what will protect you in the event that someone sues. The non-profit status is for tax-free purchases and fund-raising. I second the homeschool cpa website. She also has a book that his helpful. https://www.amazon.com/Homeschool-Co-ops-Start-Them-Burn/dp/0982924585/ref=sr_1_1?ie=UTF8&qid=1525257580&sr=8-1&keywords=carol+topp Quote Link to comment Share on other sites More sharing options...
mom@shiloh Posted May 2, 2018 Share Posted May 2, 2018 6 hours ago, staceyobu said: I guess if a kid gets hurt or we manage to piss someone off and they sue. Is there a way I can limit them coming after me individually? We've decided not to get the 501c3. The benefits don't justify the extra paperwork and fees. If someone comes after me as the president of our co-op, I will step down. The facility we meet at carries liability insurance. Quote Link to comment Share on other sites More sharing options...
SamanthaCarter Posted May 2, 2018 Share Posted May 2, 2018 I believe you can start one for pretty cheap, but yes, the state corporation commission will require an annual fee around $100, and there could be costs associated with filing an annual 990. Id like to do one for our co-op. I keep running into software companies and other organizations that are offering thier products or services free or reduced to educational organizations, with the stipulation that you are a 501c3. Also box tops for schools. Quote Link to comment Share on other sites More sharing options...
Recommended Posts
Join the conversation
You can post now and register later. If you have an account, sign in now to post with your account.