Church Formation & Government
Church Formation and Government
On the Church Structure and Legal aspects, Accountegrity Tax, LLC will:
1.- Incorporate your church with your state as a Non-Profit Religious Organization
2.- Help you develop your church Articles of Incorporation that will give you legal protection.
3.- Obtain a Federal Employer Identification Number (FEIN) with the IRS
4.- Help you draft your church Constitution and By-Laws, adopting the governmental structure of your
ministry.
5.- Apply for Sales Tax, Franchise Tax exemption with the Secretary of State
6.- Create policies such as: Conflict of Interest, Cash Handling, Internal Controls
7.- Guide you with board member governance, operations, and orientation
Benefits of Hiring Accountegrity Tax LLC for church formation services:
Aspects to consider for an effective church financial oversight:
On the accounting aspects, Accountegrity Tax, LLC will:
1.- Install the proper accounting software, and create the chart of accounts.
2.- Train your staff or volunteers to perform day-to-day accounting tasks.
3.- Establish a good system to keep track of donations and funds.
4.- Maintain your accounting system, reconciling your bank statements and general ledger.
5.- Produce financial statements such as Balance Sheet and Profit and Loss.
6.- Help you establish a budget for churchwide events and for each department.
7.- File proper employment tax returns, set up housing allowance and file 1099 for contractors.
Governing documents and policies:
The legal hierarchy of governing and policy documents is not a matter of opinion or debate, but rather a matter of law. If a conflict exists among two or more documents in the hierarchy, the higher-level document trumps the others.
The hierarchy of documents is as follows:
1.- Law (Federal, State and Local)
2.- Articles of Incorporation
3.- Bylaws
4.- Policies adopted by the board
5.- Procedures adopted by management
Important Policies to Consider:
In determining whether a church’s board should adopt a particular policy, the church should consider several
factors.
Among them are whether the policy:
- Would be helpful in ensuring compliance with the law
- Could help protect the church or its constituents
- Will enhance the effectiveness of the church in carrying out its mission and purpose
- Fosters confidence and trust on the part of the employees and/or constituents
Every church should have a policy for:
- Conflicts of interest
- Executive compensation-setting
- Dishonesty, fraud, and whistleblower protection
- Management of Church Files and Record retention
- Donor privacy
- Cash Handling Guidelines
- Expense documentation best practices
- Tax Exempt Guidelines
We will come to your location!
If you need help to properly record your business income and expenses, or have any tax related question, let us know!
We have 30 years of accounting experience and 20 years of tax experience!
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