Follow this instructions to maintain your 501(c)(3) Nonprofit Public Charity in Mississippi in good standing.
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8 Ways to Keep Your Nonprofit Legal
To keep a 501(c)(3) nonprofit company in Mississippi, you must do the following:
Apply for a state tax exemption.
Tax-exempt Organizations must file annual federal returns.
Keep a Registered Agent on file.
Submit periodic reports
Request permissions and licences
Register your charitable organisation with the Mississippi Department of Employment Security.
Follow the Public Inspection Rules.
1. Apply for a state tax exemption.
A. Exemption from state income taxes
You may submit your 501(c) decision letter to the IRS together with your application for a Mississippi Taxpayer ID after you have received it. The Mississippi Department of Revenue will next decide whether or not you qualify for a corporation income/franchise tax exemption. The Mississippi Taxpayer Access Point is where you may get your Mississippi Taxpayer ID (TAP).
B. Exemption from state sales tax
The majority of Mississippi organisations will have to pay sales and use taxes. To learn more about exemptions and to discover whether your organisation qualifies, go to the Mississippi Department of Revenue’s Sales Tax Exemptions website.
2. Tax-exempt Organizations’ Annual Federal Returns
A. Federal Annual Returns
The IRS requires most tax-exempt charitable organisations to submit an annual return (Check the IRS website for a list of exceptions).
An organization’s yearly gross receipts dictate which form should be utilised to submit the annual federal return.
The IRS defines ‘gross receipt’ as “the total sums the organisation received from all sources throughout its yearly accounting period, before deducting any expenditures or expenses.”
For gross revenues of $50,000 or more, file Form 990-N.
$200,000 in gross income and $500,000 in total assets —- File 990-EZ
If your gross revenues exceed $200,000 or your total assets exceed $500,000, you must file a 990 form.
B. Unrelated Business Profits
If an organisation earns more than $1,000 from a trade or company that is unrelated to the organization’s declared purpose, it must submit Form 990-T to pay taxes on that revenue.
If your organisation anticipates to pay $500 or more in unrelated business income taxes for the year, you must pay a quarterly estimated tax on the unrelated business income using Form 990-W.
3. Keep a Registered Agent.
Any charity that has formed must have a registered agent with a Mississippi office location. If your registered agent or office address changes, you must submit an Amendment on an Existing Business form with the Secretary of State (through their online portal) so that your Articles of Incorporation may be changed.
Your company may be terminated if you fail to inform the Secretary of State of this change.
4. Submit Periodic Reports
Within the first five years of incorporation, the Mississippi Secretary of State may require your organisation to submit a Status Report. The Secretary of State will send a request for this report to your Registered Agent, along with filing instructions.
Failure to submit the required reports may result in the termination of your company.
5. Obtain Permits and Licenses
The majority of Mississippi NGOs will not need any form of general business licence. Navigate to the MS.gov website to look out particular licencing requirements that may apply to your business. You should also check with your city or county clerk’s office to discover if any local licencing requirements exist.
6. Registration of Charities
Charitable Mississippi NGOs will almost certainly need to register with the Charities Division of the Mississippi Secretary of State. Check their website to discover whether your group is needed to register, and then register online. If you are obliged to register, you must renew your registration every year.
If your organisation intends to hold charity gaming of any type (raffles, bingo, etc.), a specific licence from the Mississippi Gaming Commission is required. On their website, you may apply for a gaming licence.
7. Register with the Mississippi Department of Labor.
If your organisation will have any form of workers, you must register with the Mississippi Department of Employment Security.
Registration is simple and may be done online. Contact information is available on the Mississippi Department of Employment Security website.
8. Obey Public Inspection Rules
To comply with federal requirements governing 501(c)(3) organisations, you must make the following papers available to any member of the public who wants them:
Annual returns for your organisation may be filed up to three years after the due date (including the following Forms: 990-PF, 990-EZ, 990-T, and 990)
Any supporting documentation and attachments for the 990 forms listed above. For Schedule B, however, you simply need to indicate the kind of the gift and the amount given.
Official IRS documentation demonstrating that your group is tax-exempt.
Your organization’s exemption application and any supporting documentation filed with it (including Form 1023).
Your company is NOT required to share the following papers or information with the general public:
Any part of Schedule B of Form 990/990-EZ that names donors.
Anything deemed an adverse judgement, including past rejections of tax-exempt status.
Any extra information that the IRS is entitled to withhold, such as trade secrets, patents, and so forth.