Fill Your California 3500 Form

The California Form 3500 is an important document for organizations seeking tax-exempt status in California. When submitting this form, there are several other documents that may be required or helpful in the process. Below is a list of six forms and documents that are often used alongside the California 3500 form, along with brief descriptions of each.

• Form FTB 3500A: This form is used for organizations that are applying for tax-exempt status but may not have all the necessary documentation to complete Form 3500. It allows organizations to submit a simplified request for exemption.
• Form 199: This is the California Exempt Organization Annual Information Return. Organizations must file this form annually to report their income, expenses, and activities to maintain their tax-exempt status.
• Form FTB 199N: Known as the California e-Postcard, this form is for smaller tax-exempt organizations that meet certain criteria. It simplifies the reporting process for those with gross receipts under a specified threshold.
• IRS Form 1023: This is the application for recognition of exemption under Section 501(c)(3) of the Internal Revenue Code. Organizations applying for federal tax-exempt status must submit this form to the IRS.
• Bylaws: Bylaws are essential for any organization. They outline the rules and procedures for governance, including how meetings are conducted and how decisions are made. Providing a copy of the bylaws can help clarify the organization’s structure.
• Financial Statements: Organizations may need to provide detailed financial statements, including income and expense reports, to demonstrate their financial health and support their application for tax-exempt status.

Gathering these documents can help ensure a smoother application process for tax-exempt status in California. Each document plays a crucial role in supporting the organization's request and demonstrating compliance with state and federal regulations.

• Misconception 1: The California 3500 form is only for nonprofit organizations.

This form is used by various types of entities, including foreign corporations and limited liability companies (LLCs), that seek tax-exempt status in California.

• Misconception 2: You cannot submit copies of required documents.

Copies of the necessary documents are acceptable. However, failing to provide them may delay or deny the exemption request.

• Misconception 3: Only new organizations need to file the 3500 form.

Organizations that have had their tax-exempt status revoked must also file this form to reapply for exemption.

• Misconception 4: The 3500 form guarantees tax-exempt status.

Filing the form does not guarantee approval. The organization must meet specific criteria set by the California Franchise Tax Board.

• Misconception 5: You don’t need to provide a detailed narrative of activities.

A comprehensive description of past, present, and planned activities is required. This helps demonstrate how the organization meets its exempt purpose.

• Misconception 6: The organization can skip the financial data section if it is new.

Even new organizations must provide financial data, including a proposed budget for the next four years if they are not yet active.

• Misconception 7: Fundraising activities do not need to be disclosed.

Organizations must disclose any fundraising activities they conduct or plan to conduct. This includes various methods such as mail solicitations or online donations.

How to Use California 3500

Completing the California Form 3500 is essential for organizations seeking tax-exempt status. The form requires specific information about the organization, its activities, and its financial data. Accurate and complete information is crucial for the successful processing of the application.

1. Obtain the Form: Download the California Form 3500 from the California Franchise Tax Board website or request a physical copy.
2. Fill in Organization Information: Provide the organization’s California corporation number, FEIN, name, web address, street address, city, state, ZIP code, and telephone numbers.
3. Complete Representative Information: Enter the representative’s name, email address, street address, city, state, ZIP code, and telephone numbers.
4. Answer General Questions: Respond to questions regarding the organizational structure, including whether the organization is a foreign corporation, trust, or LLC. Provide additional details if applicable.
5. Part II - Narrative of Activities: Describe the organization’s past, present, and planned activities. Include the purpose of each activity, when it was initiated, and who will conduct it.
6. Part III - Financial Data: Indicate whether the organization has filed Form 199 or FTB 199N for the current and prior years. If not active, attach a proposed budget for the next four years.
7. Part IV - Officers, Directors, and Trustees: List names, titles, mailing addresses, and compensation for all officers, directors, and trustees.
8. Part V - History: Indicate whether the organization has been issued a previous California ID number and if its exemption was revoked by the IRS.
9. Part VI - Fund Raising: Specify if the organization participates in fundraising activities and check all applicable programs.
10. Part VII - Specific Activities: Answer questions regarding gaming activities, leasing property, publishing literature, and operating outside the U.S.
11. Review and Sign: Carefully review all information for accuracy. An officer or representative must sign and date the form.
12. Submit the Form: Mail the completed Form 3500 to the Exempt Organizations Unit at the address provided in the instructions.