Thank you for your question and thank you most kindly for requesting me to assist you further.Let me explain both concerns a bit because they are a bit different. Some purchases (in fact many purchases) you make with company funds, if they are for company purposes, may be written off or otherwise defined by your accountant as something for which tax is not owed. Let me try to illustrate.Let's say you receive $40,000 in donations before you are a formal non-profit. That amount would be considered taxable. However, via receipts, you can show that you spent $30,000 on items that can be written off, such as corporate furniture, travel, even wages. Then the tax obligation may only be $10,000 based on proof that other expenses were essentially justified and were not 'profit' as they would come before you get to net income calculations.Good luck.
You are most welcome, James, glad to help!Should you ever need me again, please feel free to ask for me by name and I will be more than happy to assist you further.
Thank you for your follow-up, James. I do apologize for the delay.You do not need to fill out forms in other states, if the IRS deems you be a valid entity, your non-profit status would be recognized in whatever state you wish to collect donations, you would just have to make sure that you are not violating those state's laws in how you pursue your solicitation and collection.Good luck.
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