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Election Outlook: October 6, 2014 is the last day to register to vote for the November 4, 2014 General Election. | What’s on the Ballot | Voter information
Corporations

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Online Searching and Filing

Nonprofit Organizations

Nonprofit Corporations: Not all non-profit organizations are filed with the Secretary of State. Many, but not all, non-profit organizations chose to incorporate. A nonprofit corporation is created by filing a certificate of formation with the secretary of state in accordance with the Texas Business Organizations Code ("BOC"). "Nonprofit corporation" means a corporation no part of the income of which is distributable to members, directors, or officers [BOC, Section 22.001(5)]. A nonprofit corporation may be created for any lawful purpose, or purposes permitted by the BOC. Not all nonprofit corporations are entitled to exemption from state or federal taxes.

Unincorporated Nonprofit Associations: Section 252.001 of the BOC defines an unincorporated nonprofit association as an unincorporated organization consisting of three or more members joined by mutual consent for a common, nonprofit purpose. All unincorporated nonprofit associations, whether or not the entities are tax exempt, are subject to the provisions of the Uniform Unincorporated Nonprofit Association Act, Chapter 252 of the BOC. The Act addresses a limited number of major issues relating to nonprofit associations; namely, the authority of the nonprofit association to acquire, hold and transfer property in its own name; the authority to sue and be sued as a separate legal entity; and the contract and tort liability of an association's officers and its members. If you need further information regarding these provisions or how they might affect your association, you should contact your own legal counsel.

An unincorporated nonprofit association may, but is not required to, file with the secretary of state a statement appointing an agent authorized to receive service of process on behalf of the nonprofit association. The filing of the statement does not represent the creation of the nonprofit association; it simply provides a method for a nonprofit association to receive notice of any lawsuit brought against it.

Tax Issues for Nonprofits

Neither a nonprofit corporation nor an unincorporated nonprofit association is automatically exempt from federal or state taxes.

To become exempt, a nonprofit organization must meet certain requirements and apply with both the Internal Revenue Service and the Texas Comptroller of Public Accounts

Texas Nonprofit Resources

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