Learn what the tax requirements are for nonprofits. For example, even though they are tax exempt, sales taxes may still be required to be paid. The IRS requires an informational return to be filed each year. Learn the difference between a nonprofit and the new B Corp structure.
- The primary goal of most businesses…is to make money and ultimately profits.…And when they do they pay tax and contribute…to the ongoing operations of their country.…But what about organizations…that have no intention of making profits?…Charities are organizations that are primarily focused…on providing a product or service that helps people.…All profits are plowed back into the organization.…The tax treatment of these organizations…is significantly different…from their for profit counterparts.…Charities span the spectrum of organizations…from PTA's at schools to sporting associations…to religious organizations…that provide help for the elderly, homeless and sick.…
In most countries governments do not…look to these organizations as a source of tax revenue.…These provide necessary social benefits…that add to the services the government provides.…In that context it makes sense…that they don't need to pay tax.…And are granted tax exempt status.…But and this is a big but,…many countries still require some sort of application,…
- Determine how business structure and location impact the taxes on your small business.
- Break down the different types of taxes.
- Identify ways to reduce taxable income.
- Recognize strategies to that are helpful in reducing the tax rate.
- Formulate a plan on how to best manage your small business taxes using a tax planning tool.