Question:
I want to create a ministry organization (other than a church). What kind of license would I need if its a ministry? What kind of tax ID do I need?
Answer:
Generally, it's not so much a matter of licenses (although local zoning and building codes must be followed).
A ministry will need a federal employer's identification number even if it employs no workers because opening a bank account will likely require one. Form SS-4 is used for this purpose (http://www.irs.gov/pub/irs-pdf/fss4.pdf).
The bigger issue is the 26-page Form 1023--Application for Recognition of Exemption (http://www.irs.gov/pub/irs-pdf/f1023.pdf). Its completion is necessary to receive an IRS Determination Letter that acknowledges the organization's eligibility to receive charitable (deductible) contributions and to exclude its exempt revenues from taxation.
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