Association Vs Corporation

[Lapidoth]

We are a group of parents that are working for non-profit status of a community dance studio for our children to continue their education.  The studio has not made a profit, the original owner was going to close the doors.  We filed with the IRS non-profit corporation papers, the CA corporation status has not yet been granted.  The IRS suggested that we file immediately as an association; the agent suggested a few changes to our articles/by-laws.  Our questions are: 1.)Can we put out application on hold with the IRS so that we do not loose the application fee while we clear the papers with the state?  2.) Should we file for the non-profit association now?  3.)Can we change from a non-profit unincorporated association to a non-profit corporation later this year, when the corporation papers clear the state?

[Hagaward]

It appears that you have done things the wrong way.  Usually I set up a California corporation which is done in a few weeks.  Then we file the IRS form 1023.  I suggest you just ask the IRS if you can wait another couple of weeks until you receive your stamped filed articles of incorporation and adopt bylaws. Otherwise, you have a lot of extra work ahead of you.

Harvey Mechanic

Attorney at Law

[email protected]