When researching church tax law, you’ll find that there are several documents required to achieve a tax-exempt status.  Knowing the details of tax exempt law can assist you in the process of filing for your status as a facility that will not be required to pay local, state, or federal taxes.

The first step to prepare for such a request is to incorporate your church.  To receive the proper documentation to do so, contact the Secretary of State.  You must determine a name for your organization, preferably one that includes some clue as to the mission or faith of your ministry.  Upon choosing a name, you’ll recruit members for a board of trustees.  These should be closely trusted individuals who can help you to form the church constitution and write the by laws that will govern your ministry.  You may want to request the assistance of ministers and preachers from other congregations who are familiar with this documentation from their own church, perhaps even offering examples. 

From this point, it will be necessary for you or another individual to be familiar with church tax law.  You will first have to contact the Internal Revenue Service to receive your federal or employee identification number.  You will also need to contact the Department of State to receive your state number.  These are easy to obtain and will help to you to apply as a tax-exempt organization for both local and state purposes.  However, tax exempt law requires you to apply for a Letter of Exemption in order to obtain a tax-exempt status from the federal government.  This is not as easy to obtain, since the letters are usually authorized in support of ministries and churches that have been in existence for a lengthy period of time.

One suggestion you may wish to take to heart is to form your organization under the sheltering arms of an existing ministry that has been in existence for some time and already has a tax-exempt status.  Upon receipt of all of this documentation, you’ll be able to apply your full tax-exemption to your organization, and you can open the doors of your church to the public, offering credits for donations from members as well as not being required to pay taxes.  If there is any part of the process that you do not understand, it is recommended that you consult with an attorney, who can assist you in applying for all of the necessary status documentation.

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