Meeting with Accountant - basic summary

[Josh Williams]

Ahoy,

 Met with Lynne Chaimowitz, she was discovered via the new.org web site. and is an accountant that primarily works with 501c3 organizations, which we are not yet. However, she is capable of helping us file the 501c3 form (she will probably want $ : )

Her basic recommendations:

1. Immediately find a corporate / tax attorney so that we can:
   • Review Purchase Agreement, primarily for the purpose of making sure our accounting methods are kosher w/501c3 desires.desires
   • Make sure that we are kosher with current status of State & Federal Filings
     • Our Articles of Incorporation were accepted on January 10th, 2010, according to the stamp (see link at bottom)
2. Immediately begin work on filling out IRS 501c3 Forms
   • She did say it's better to file properly the first time. Don't rush & send in something shitty.
   • She is willing to help out with this - probably cost $
3. Get D&O Insurance figured out
4. Make sure we have basic accounting information for 2010, 2011, 2012. (Pretty solid on 2011 and 2012)

A fun conundrum:

 - We are in a limbo spot of actually being a for profit corporation, with the intent of become a 501c3 Non profit. The IRS gives you ~3 years to figure this out.

 - If we file annual income tax forms right now, we would be filing them as a for profit corporation

 - - Filing annual income tax forms as a for profit corporation makes it much harder to then apply to become a non profit 501c3.

 - If we don't file any annual income tax forms within 3 years from our initial incorporation date (January 2010), the IRS gets upset.

 - Turnaround time for 501c3 forms is typically >6 months from when we submit it to the IRS.

 - If our intent is to become a 501c3 Non Profit, we need to get the submission process started ASAP, and turned in within the next couple weeks.

 - If our intent is to become a <some regular for profit corporation>, we need to file annual income forms & more ASAP.

Who wants to:

a) Find a reputable Corporate/Tax Attorney to communicate our situation with

b) Start trudging through the IRS: http://www.irs.gov/charities/article/0,,id=96109,00.html

c) Put together a collection of 2010, 2011, and 2011 income vs. expenses, bank statements, etc.

[Josh Williams]

FYI, I'm trying to centralize the basic financial fun at:  http://wiki.allhandsactive.com/Finances 

[Dana Nelson]

Egads! We have to do this like now.

[Alexander Honkala]

OK, looks like we're best set to be a 501c3.

We can fill it out and file it ourselves or we can use Legalzoom to do it.

-X

[Dana Nelson]

I'm working on the paperwork application already. Haven't gotten very far, but will need some help with it, especially since  I wasn't around during the beginning and know nothing about the bank stuff.

On Thu, May 31, 2012 at 6:57 PM, Dana Nelson <heib...@gmail.com> wrote: