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New travel team /501c(3) status or not

Feb 28, 2018
13
1
I have started a new travel 10u girls fastpitch team comprised of 12 girls. We have insurance , facilities to practice in,team checking account, and already signed up for tournaments and started practicing. I would like to seek sponsorship from local businesses and fund raise, but want to do so with out getting into any legal trouble later. Should i fill out a W-9 form to get a tax id and then try to get 501c(3) status for a non-profit and tax exemption or is this overboard for what we are doing. We are keeping our tournaments within 1 hour this season and only need the extra money to help pay for uniforms and tournament costs. However in the future we may add more teams. What name do I put on line (1) of the W-9 and do I mark it a sole proprietorship since i am not a organization as of yet? Also if anyone has good advice on where to go get assistance on filling out the forms for 501c(3) please point me in the right direction.

Thanks for the help in advance.

Morrison Fury
 
Sep 22, 2015
27
3
Before you do anything, apply for your EIN. It takes 2 minutes and you will get an instant response.

Second, it sounds like you should check out the 1023-EZ. $275 to file form as an unincorporated association. This form saves time and paperwork if it fits your needs.

It's not hard. Good luck.

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Aug 23, 2016
253
28
You should consider talking to a tax adviser or attorney about what's best.

If you haven't formed a business entity (corporation, LLC, partnership, etc.) you're a sole proprietorship. And I am not a lawyer, but I am pretty sure you can't be a 501(c)(3) unless you're a business entity.
 
Feb 28, 2018
13
1
Lightning

Thank you for the advice , I have actually contacted a local attorney and waiting to hear back from them as well. I have spoken with a couple other teams and they said that because of the amount of income i would be seeking it shouldn't be an issue not to file 501c(3) ,but i want to confirm that.
 
Sep 29, 2014
2,370
83
The big thing with the 501c(3) is whether the businesses can get the tax write off when they contribute...plus helps with everything being transparent since you have to disclose information on the form.
 
Sep 22, 2015
27
3
SquaredUP

When applying for my EIN do i check sole proprietor, partnerships,corporations, or L.L.C.

Thanks
Your situation is always unique no matter how similar it may seem and your lawyer will provide you the counsel you're seeking. Additionally, read the instructions for the form as it will answer a lot of the FAQ's.

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Feb 28, 2018
13
1
I spoke with my lawyer and he advised me that it wouldnt be necessary to file for a 501 at this time because of the amount of donations/gifts/fundraiser money I would be dealing with. He said that most business would most likely gift the money or write it off as advertising if I had their name in a banner or any other piece.

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Feb 16, 2015
711
28
South East
One of the things that my DD’s former team benefited from for being an 501c(3). Is that for instance the company that I am employed by would donate up to 5K/year as a charitable contribution if I worked X amount of hours per quarter. So it maybe worth checking with some parents on the team if their employers offer this. I know a lot of companies do offer programs like that but some do not consider sports qualify able.


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