If you are wondering whether or not you need to apply for a non-profit EIN (Employer Identification Number) in a new state, the answer is, “It depends.” If you are already registered as a non-profit organization, you do not need to apply for a tax ID again simply because you are moving. If you are starting up a non-profit organization in another state, you will need to obtain a new EIN.
Do You Even Need an EIN for a Non-Profit?
Because non-profit organizations do not operate with the goal of turning a profit, like other businesses, they do not need to pay federal income taxes. The Internal Revenue Service (IRS) has recognized non-profits as exempt in the Internal Revenue Code (IRC), which means they do not have to pay taxes on charitable contributions. But, a non-profit needs to file for an EIN to receive this exempt status.
What is a Non-Profit?
There are many types of non-profits. In fact, the IRC classifies 25 kinds of organizations that can qualify for non-profit exemptions from federal taxes. Among these organizations are churches, church organizations, special associations, and assemblies. These organizations fall under Section 501(c)(3) of the IRC and they must be in operation as a charitable, educational, religious, scientific, public safety, literary, amateur sport, or anti-cruelty to children and animal(s) organization, among other options.
The IRS uses a non-profit’s EIN to identify it as exempt from federal taxes. If you will be forming a new non-profit organization in another state, IRS-EIN can help you file your IRS SS4 online, so you can quickly and easily get your EIN and be officially considered an exempt organization.