What are the tax requirements if any for a new running club with a small amount of members.
What are the tax requirements if any for a new running club with a small amount of members.
Do you mean to be recognized as a non-profit entity?
Get a lawyer friend to help you file a 501(c)3 to give you non-profit status.
You don't need a lawyer.
Tax requirements? How structured is this running club? My club just meets a few times a week to run/workout together, and on weekends we all wear the same singlet to races. Any team money we win we use to buy nicer singlets or warmups and/or beer.
luv2run wrote:
Do you mean to be recognized as a non-profit entity?
I've already looked into the non-profit issue and 501(3)c. But my question is do we have to do this? I mean if we just collect dues in the amount of x and spend the money on the members for various expenses do we have to file this as income with the IRS? Is it required or can we just get by with keeping records and receipts for now and not filing anything as long as we spend the dues on the members? I mean just the costs of fees for getting non-profit status would exceed the dues we now collect.
Don't do anything. You are fine as you are.
You are not trying to raise money and promise tax deductions to the contributors. And you are not making any profit. Basically, it's a bunch of people spending money together and reimbursing expenses.
Unless some need arises that forces you into the world of non-profits etc., there is nothing to be done.
Easy.....