Church Corporations Sole - Corporation Soles

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3/23/2020 Church Corporations Sole | Corporation Soles

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FAQs

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Frequently Asked Questions

Q. What are the 7 states that still have active Corporation Sole laws?
A. California, Arizona, Alaska, Hawaii, Montana, Colorado and Wyoming. Currently (Sept, 2019) we hear that Arizona is working on removing the
ling of a CS. IRS has/is successfully removing these from all states because it removes their control over YOUR church's nances.

Q. Can Church Corporations Sole act as my Registered Agent, or who can?


A. Your Registered Agent MUST live in the state in which you are ling. For example: if you le for your Corporation Sole in Wyoming, the
Registered Agent must be a resident in the state of Wyoming. This applies to any of the 7 states in which you le. If you live in the state in which
you are ling; you are your own Registered Agent and no one else is needed.

Q. How do I nd a Registered Agent in the state in which I le?


A. Simply go to Google.com and search for Registered Agents - you'll nd a huge list of them. Example: if you're ling in the state of Wyoming,
simply search "Wyoming Registered Agents." They will charge anywhere between $49 - $100's, depending on the services you select from them.

Q. What if there are church members in a di erent state, can they still sign our Constitution Document?
A. Yes, although they would have to be mailed the a davit, have them sign it in front of a public notary, then have them send it back to you
directly. It is strongly recommended that members that attend on a weekly basis sign the Constitution document.  Your church constitution is
your defense should you ever be contacted by the IRS.

Q. What are the common mistakes churches make that put them under a 501(c)(3)?
A. Mistake #1: A church “incorporates” itself with their respective state
Mistake #2: Filling out and ling IRS form 1023, seeking “O cial Recognition of Tax Exemption”

Q. Can a church reorganize its current 501(c)(3) in favor of a Corporation Sole?


A. Absolutely!  But the church leaders must discuss, donate and dissolve its current 501(c)(3) status.  Call for details.

Q. If I get a Corporation Sole, will my church be considered a 501(c)(3)?


A. Not at all.  Remember, there are 2 tax exempt laws in the United States, the rst is 508(c)(1)(a) and the other is 501(c)(3).  Your church will be a
completely separate legal entity from your Corporation Sole and will be under the 508(c)(1)(a) tax exempt protection, with all the bene ts of a

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501(c)(3), such as tax deductible donations.  Call for more details.  If your church is currently a 501(c)(3), dissolve it.  It will not legally be known as
a church while being considered a state entity.

Q. What are the advantages of the Corporation Sole versus the traditional 501(c)(3)?
A. Unlike traditional 501(c)(3) churches (those that cannot be active in politics whatsoever for fear of losing their tax exempt status), a church
organized nancially with a Corporation Sole frees the church and CAN operate politically without fear of losing its exempt status.

A Corporation Sole, unlike all other forms of 501(c)(3) religious organizations, requires NO board of directors, trustees or governing body, no
church treasurer or by-laws.
The Corporation Sole acts as a “sole” o ce that handles all of the assets, while  acting as a tax exempt organization, asset holding entity, business,
and more.
No ling Federal or State taxes.
No $800 + per year to the Franchise State Tax Board.
No Bylaws.
No Board of Directors.
The church is now Mandatory exempt from the IRS.
Can accept tax deductible donations just like a 501(c)(3).

Q. Do you need to have a physical church building to have a Corporation Sole?


A. Not necessarily, however, how do we lawfully ful ll the IRS’s 14-point preferences for what they would like to see in a church?  We do this
through your Church's Constitution.  Call for details.

Q. Where can I nd the 14 characteristics that de ne a church, according to the IRS?


A. The term church is found, but not speci cally de ned, in the Internal Revenue Code. With the exception of the special rules for church audits,
the use of the term church also includes conventions and associations of churches as well as integrated auxiliaries of a church. Certain
characteristics are generally attributed to churches. These attributes of a church have been developed by the IRS and by court decisions. They
include:

Distinct legal existence


Recognized creed and form of worship

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De nite and distinct ecclesiastical government


Formal code of doctrine and discipline
Distinct religious history
Membership not associated with any other church or denomination
Organization of ordained ministers
Ordained ministers selected after completing prescribed courses of study
Literature of its own
Established places of worship
Regular congregations
Regular religious services
Sunday schools for the religious instruction of the young
Schools for the preparation of its members

The IRS generally uses a combination of these characteristics, together with other facts and circumstances, to determine whether an organization
is considered a church for federal tax purposes. This information can be found at: https://www.irs.gov/charities-non-pro ts/churches-religious-
organizations/churches-de ned (https://www.irs.gov/charities-non-pro ts/churches-religious-organizations/churches-de ned)

Q. Is a Corporation Sole considered to be a church?


A. The answer is No. A Corporation Sole is an OFFICE of the church to oversee all nances, real estate, trusts, etc of the church.  This is why it’s
important to have a Church Constitution Document on le.

Q. Why is a Church Constitution Document so important?


A. There are 14 points that the IRS and the Federal Government look for to de ne a church (see above). The Church Constitution clearly ful lls
these 14 points.  It also clearly de nes the “Bishop/Overseer” and a Successor within the Corporation Sole.

Q. As the Overseer/Bishop of the Corporation Sole, am I required to pay personal taxes?
A. Yes! A Corporation Sole is an o ce of the church, not a personal o ce.  Although a “Natural Person” is being incorporated, this o ce is for the
church.  If the Bishop receives a salary, that salary is taxable, and he/she must pay personal taxes.

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Q: Can a church or Corporation Sole own a business?


A. First, the “Church” is not supposed to own or run a business. A church is a nonpro t, with the purpose of spiritual teaching, rituals, mentoring,
ministering, etc.  If there is anything that even looks like a business, the Bishop and Successor should completely separate themselves from it to
not draw an IRS ag to it.  If there is a business, it should have its own ownership or Board, legal organization, nancing, and pay taxes.  This
business can donate to the ministry for tax deduction purposes. Mixing nonpro t and business is very complicated and you are encouraged to
hire a professional tax attorney that understands nonpro ts before you proceed.  Nonpro ts cannot charge fees, but can ask for donations.

Q: Do we charge fees?
A: We are an American Free Enterprise Business and our primary purpose is education. However, if you would like us to complete the paperwork
for you, our fees are based upon what you are wanting. Some want just advice, some what us to complete their Articles of Incorporation, and
some want us to complete a full package for them. Fees also depend on what state you'd like to le, and if you need us to be your Registered
Agent. We recommend California, since it's one of the states that allow you to le with great ease. Normally, this would cost you about $2500 if
you went to an attorney; and we're no where near this price. We consult and assist you with:
Complete Corporation Sole Package
Review of Existing Corporation Sole
Make your existing Corporation Sole Legal
Create a Church Constitution

Q: Why use us?


A: You need a custom ling because you are a custom church, each with individual personal beliefs and rituals, as small as they may be, but still
your own. These lings need to be led using your own terminology to authenticate them. We assist you in completing these documents, and that
takes time. Be careful of those that o er a prefabricated template. These templates go to multiple churches, even 1000’s of them. IRS deeply
frowns on “template” lings and considers them to be a tax evasion scam. IRS already frowns on Corporation Soles, the less you do to draw
attention to yourself, the better. When there are multiple, up to 1000’s and more, template lings within the same state, they are agged by the
IRS. Once agged, IRS begins to watch these lings. This could lead to several things, such as: fraudulent lings considered to be a scam, and
other activities that could lead you into court, or possibly jail.  History already shows many good people have lost everything and are in jail, or
have paid extreme nes and penalties. We encourage you to avoid putting yourself, or your church, into this path of destruction.

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DISCLAIMER: Church Corporations Sole is acting as an adviser for you, NOT as an attorney. The information on this website is for educational
purposes only, not legal advice. We can consult you with federal legal issues regarding corporation soles, and assist in lling out all proper forms
and registrations. If you'd like an attorney, we can refer you to one that has been ling Corporations Sole for approximately 35 years.

CONTACT INFO

Mailing Address : 30251 Golden Lantern, Ste E 374, Laguna Niguel, CA 92677

Email : Email Us (mailto:[email protected])

Phone : (844) 693-8688

Copyright © Church Corporations Sole - All Rights Reserved .

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