California Secretary of State Requirements
If you want to incorporate and get tax-exempt status for your organization, mail the following items to:
DOCUMENT FILING SUPPORT UNIT
SECRETARY OF STATE
PO BOX 944260
SACRAMENTO, CA 94244-2600
- The original and at least four copies of the articles of incorporation.
- A $30 check payable to the Secretary of State for the filing fee.
The Secretary of State will endorse the articles and send the copies back to you. (If necessary, the Secretary of State will advise you of any corrections you must make to satisfy the requirements of the California Corporations Code.) After that, file the FTB 3500, Exemption Application, or FTB 3500A, Submission of Exemption Request.
Franchise Tax Board Requirements
For acknowledgement of federal tax-exempt status under Internal Revenue Code (IRC) Section 501(c)(3), send the following items to us:
- FTB 3500A, Submission of Exemption Request, with an original signature.
A copy of the federal determination letter showing federal exemption under IRC Section 501(c)(3).
We will send an acknowledgement letter stating that the entity is recognized as having California tax-exempt status.
Note: For state income tax purposes, the effective date of an organization's tax-exempt status shall be no later than the federal effective date. If the federal effective date differs from the incorporation date, the organization should consider filing form FTB 3500, Exemption Application.
Example:
- ABC organization incorporated on 12/31/1999.
- Federal exempt status effective 12/31/2002.
- ABC organization filed form 3500A.
The state's effective date for ABC organization is 12/31/2002. To avoid the minimum franchise tax or annual tax, ABC organization must file form FTB 3500, Exemption Application to request an exemption retroactive to 12/31/1999.
For all other tax-exempt status, send all of the following items to us:
- FTB 3500, Exemption Application, with an original signature.
- A check for $25 payable to the Franchise Tax Board for the Exemption Application fee.
- One copy of the endorsed articles of incorporation.
- One copy of the by-laws or proposed by-laws.
- One copy of your budget or proposed budget.
- All other required information and supporting data identified in form FTB 3500.
Include all requested documentation and answer all questions on the form. If we need more information, or if you need to amend the articles in order to qualify for tax-exempt status, we will contact the officer or representative designated on the application form. However, this will delay our determination of tax-exempt status.
Important: Your organization is not exempt for tax purposes until we issue the determination letter. Send the FTB 3500 to us at least 90 days before you need the tax-exempt status to ensure adequate time to process your application.
Mail the FTB 3500 to:
Franchise Tax Board
PO Box 942857
Sacramento CA 94257-4041
Mail the FTB 3500A to:
EXEMPT ORGANIZATIONS UNIT MS F120
FRANCHISE TAX BOARD
PO BOX 1286
RANCHO CORDOVA CA 95741-1286