No organization is automatically tax-exempt. To become exempt, even charities and nonprofits must meet certain requirements and apply with both the Internal Revenue Service (IRS) and the Texas Comptroller of Public Accounts. 

Nonprofit Tax Exempt Form

Filing Form 202 (see above) and incorporating your nonprofit organization can make it easier to achieve tax exemption at both the state and federal levels. To request tax exemption from the IRS, you will need an employer identification number (EIN) or tax identification number, and you will need to apply for exemption under Section 501(c) of the Internal Revenue Code. The IRS requires nonprofits to use Form 1023 and cautions that the form takes several hours to get familiar with and several more hours to complete. When you file Form 1023, you must pay a $600 user fee, as well.

The State of Texas also offers tax exemptions for qualified organizations. You can apply with the Texas Comptroller of Public Accounts using Form AP-204, Texas Application for Exemption. To learn more about the tax exempt form for nonprofits, call our attorneys at Perliski Law Group today.

Who is the Registered Agent of a Nonprofit in Texas? 

In Texas, the registered agent of a nonprofit organization can be an individual or an entity that meets the state's requirements.

• Individual: A member or officer of the nonprofit organization can act as the registered agent, provided they have a physical address in Texas where legal documents can be delivered.
• Third-Party Service: Nonprofits can also hire a professional registered agent service or a commercial registered agent company to fulfill this role. These services specialize in receiving and handling legal documents on behalf of organizations.

It is important to note that the registered agent must have a physical address in Texas, as a post office box or virtual address is not acceptable.

Perliski Law Group can help you fill out your forms correctly, so you do not lose money from expensive filing fees. We can also help you stay compliant with state and federal tax laws over time.

Other Considerations

When you start a nonprofit, you are also starting a business, so you should think about how you want your business to be run. We can help you draft your organization’s bylaws (or your church charter) and avoid conflicts of interest, as well.

If ever state or federal governments have questions for you – about taxes or anything else – our firm can help you answer them! We support churches, charity organizations, and all other nonprofits, and we provide nonprofit formation services on a flat fee basis.

Contact us today to schedule a free consultation with our Texas nonprofit lawyers at (214) 865-7542.

Understanding Nonprofit Tax Exemption in Houston, Texas

For nonprofits in Houston, navigating the tax exemption process can be particularly challenging. Local organizations often face unique hurdles, such as understanding the specific requirements set forth by the City of Houston and the Texas Comptroller of Public Accounts. With the diverse community and varying needs of residents, it’s crucial for nonprofits to ensure they meet all local regulations while applying for tax-exempt status.

Many nonprofits in the Houston area struggle with the complexities of filing Form 1023 and the associated user fees. The time-consuming nature of this process can be a significant pain point, especially for organizations that are already stretched thin with limited resources. Additionally, understanding the local landscape, including potential partnerships with other community organizations or local government initiatives, can be vital for success.

For assistance with the tax exemption process, including filing the necessary forms and understanding local requirements, reach out to our team at Perliski Law. We are here to help Houston nonprofits thrive and make a positive impact in our vibrant city.