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Formation Process

Can we start hiring staff before IRS approval?

Yes, you may hire staff as soon as your corporation exists and you have an EIN, but you should be realistic about cash flow and the risk that IRS approval could be delayed. Employment taxes and HR compliance apply even before you are tax-exempt.

More in Formation Process

Do we need to register for state taxes even if we’re tax-exempt federally?What’s the difference between an “incorporator statement” and board minutes?What should we do if we already collected funds personally for the project before formation?Can we form a nonprofit for a single annual event?

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