How to Form a Club in California
File for California Tax-Exempt Status

In California, nonprofit corporations are subject to California corporation franchise tax requirements until such time as they formally dissolve unless a determination of exemption is issued by the Franchise Tax Board. All corporations, even if organized on a nonprofit basis, are subject to California franchise or income tax. If you have obtained federal exemption for your organization, you must still submit an Exemption Application to obtain state tax exemption.

In order to be granted tax-exempt status, the organization must apply for exemption with both the IRS and the FTB.

Submit the Exemption Application (FTB 3500) at least 90 days prior to the date you need exempt status for your organization so that the State will have adequate time for processing. If you have received federal exempt status, furnish a copy of the federal determination letter with your state application.

Application for a determination of exemption must be made after incorporation. Mail the following to

Franchise Tax Board, PO Box 942857, Sacramento CA 94257-4041

  • An Exemption Application Form (FTB 3500) with an original signature
  • A check for $25.00 payable to the Franchise Tax Board for the Exemption Application fee
  • One copy of the endorsed Articles of Incorporation
  • One copy of the proposed By-Laws
  • One copy of your proposed budget
  • All other required information and supporting data identified in form FTB 3500
  • Copy of your Federal exemption

| An Intro | Forms | Steps | Samples |
| Goals | Name | EIN | Articles | ByLaws | Budget |
| Fed Exempt | CA Exempt | Fed Taxes | CA Taxes |

Download complete How To Form A Club document (450 kb pdf file)
Download complete package with all forms (2.6 MB zipped file)

This information is provided courtesty Pacific Rim Alliance,
a member of Los Angeles & San Diego Councils, FWSA and NSAA
last revised 17 October 2003 by A Cat Meowz Designz

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