How to Obtain a Tax Exempt Number in Florida

Obtaining a tax-exempt number is a lengthy and expensive process.

To receive a tax-exempt number in Florida, you must first incorporate a company in the state of Florida that qualifies for tax-exempt status. Typical organizations that qualify for tax-exempt status are nonprofit charities and foundations, as well as certain nonprofit health care organizations. Once your organization is incorporated, you can apply for tax-exempt status from the U.S. Internal Revenue Service. This application process can take several months and hundreds or even thousands of dollars to complete if you require assistance from a lawyer.

Things You'll Need

• Articles of Incorporation in the State of Florida
• $300 or $750 to mail with application, depending on anticipated annual revenue

Instructions

1. Incorporate your organization with the State of Florida Division of Corporations. All of the necessary forms are available at sunbiz.org. Remember to incorporate as a type of corporation that can qualify for tax-exempt status. For a list of all types of potential tax-exempt corporations, refer to IRS Publication 557. Also note that certain types of corporations require specific clauses to be included within the Articles of Incorporation to qualify of tax-exempt status.

2. Obtain a federal Employer Identification Number (EIN) from the IRS. You can obtain this number in any of three ways:
   1) Online at irs.gov/businesses/small
   2) Through the phone by calling 1-800-829-4933
   3) By mailing or faxing Form SS-4 to the IRS (irs.gov/pub/irs-pdf/fss4.pdf)

3. Complete and return Application 1023 if you are filing for exemption under Section 501(c)(3) or Application 1024 if you are filing for exemption under Section 501(a). These applications are lengthy and ask for many details, including the purpose of your organization, contact information for your board of directors, and the names of any businesses your organization plans to do business with. Each form is accompanied by instructions, but many people still employ the services of an attorney despite the extra cost.

   An application fee is also required before your application can be processed. The fee is $750 if your average annual gross receipts are expected to exceed $10,000 over a four-year period. The fee is only $300 if your average annual gross receipts are expected to be less than $10,000 over a four-year period.

   Form 1023 can be downloaded at irs.gov/pub/irs-pdf/f1023.pdf. Form 1024 can be downloaded at irs.gov/pub/irs-pdf/f1024.pdf. And completed applications should be mailed to the following address:
   Internal Revenue Service
   P.O. Box 12192
   Covington, KY 41012-0192

References

• IRS: Tax-Exempt Status for Your Organization
• IRS: Form SS-4