Date: Mon, 14 Mar 1994 17:52:29 -0400 (EDT)
From: EDK@LASPAU.mhs.harvard.edu
Subject: Re: autocrat's pledge
To: carolingia@bloom-beacon.mit.edu
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Posting-Date: Mon, 14 Mar 1994 17:53:53 -0400 (EDT)
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>Setting a corporation in Mass will cost us more than we'd save.
>Assuming we could find some lawyer to draw up the papers pro bono,
>filing fees still run about $500.  Then to maintain the corporation -
>even in a zero-profit state - costs about $1000 per year, more if you
>start counting ERS taxes.

[I've loaned out all my books, so I'm doing the numbers from memory, 
but...]

This is correct for a for-profit, but the filing fees for a non-profit 
coporation are less.  I don't have the current fee schedule, but 2 years 
about it was less that $75 for the initial filing.  There is an approx. 
$700 minimum annual state excise tax unless you get tax exempt status 
from the feds.  There also are ~$75 in annual filing fees.  ($35 with the 
annual statement of officers and directors and ~$35 with the financial 
report -- though that may actually be higher for groups with higher 
revenues than the one I deal with, I forget.)  

The IRS does have a processing fee for 501(c)3 applications.  It cost me 
$150 to submit a 501(c)3 application two years ago for MASSFILC.  (The 
fee depends on revenue and could be higher, but I don't think it would be 
if we're talking just Carolingia.)  If the feds grant tax exempt status 
under 501(c)3 you don't have to pay the state excise tax.   This is why 
organizations fight to get and keep 501(c)3 status --- $1000 annual 
minimum taxes & fees vs. $75 fees and no income or excise taxes.

The state puts out a pamphlet with all the info. for creating a 
non-profit corporation.  It's available from the Secretary of State's 
office.

Y.I.S.
Avelina