IV . ORGANIZATIONAL OPTIONS
THE ASSOCIATION ’ S BUSINESS NAME
FILING FOR AN ASSUMED BUSINESS NAME
To do business as an association in the State of Texas , the least you must do ( legally ) is to file and receive an assumed business name . Basically , an assumed business name lets the public know with whom they are doing business . Unlike a corporation , an assumed business name does not provide liability protection to the people in the organization or business .
To get a business name , you must do the following :
1 . Complete form No . 503 for an Assumed Name Certificate , which can be found online in PDF format at the link below . Once completed , applications can be filed and payed for ($ 25 ) online at SOSDirect .
Website : https :// www . sos . state . tx . us / corp / forms / 503 _ boc . pdf Forms : https :// www . sos . state . tx . us / corp / forms _ boc . shtml
The assumed name certificate application is affective for a term not to exceed 10 years from the day it was filed . It may be renewed within 6 months of expiration of original document . It is important to keep an address of the authorized representative or principal officer current with the Texas Secretary of State office .
TAX IDENTIFICATION NUMBER
Neighborhood associations should have a federal tax identification number . The number acts as a Social Security number for organizations . The number can be used to open bank accounts , file IRS tax forms , apply for tax exempt status , etc . Organizations do not need to be incorporated to receive a tax identification number .
You will need to file a SS-4 for an Employer Identification Number ( EIN ), which is a Federal tax ID number used to identify a business entity . Conveniently , this application process can be done online by visiting the IRS tax identification page at https :// www . irs . gov / businesses / smallbusinesses-self-employed / employer-id-numbers .
You should receive your tax ID number in six to eight weeks . If you need to use the number before you receive it in the mail ( for bank accounts or non-profit status ), simply state that you have applied for it , but have not received it yet .
IRS contact information : Phone : 1-800-829-4933 Website : www . IRS . gov
INCORPORATION
Incorporation is optional to all organizations and may be beneficial to your neighborhood association . When a non-profit organization incorporates , it helps define the group and the organization is deemed trustworthy . Incorporation also protects the personal liability of group members . In Texas , non-profit incorporation costs $ 25 to file and there is no renewal fee . If you decide to incorporate , You can visit the Secretary of State Corporation Office at
Neighborhood Organizational Handbook – Arlington , Texas 11