This is a transcript from the You Tube video on the Street Bishops Channel
https://www.youtube.com/c/Streetbishops
Hello, now. My name is Lance.
I’m with three bishops. You can find a such treat Bishops Dot Com. And this video here is going to be about what business structure you may want to choose for your administrator. Right, So there are a lot of ways that you can set up your ministry, but really do.
I want to give you sort of the the nuts and bolts sorta the truth on the street about what you need to do when starting your administrate, so let me tell you what usually happens right, so I’ve been doing this for I been leading this group or twenty years, and and what we do is help people start their ministries and oftentimes when they begin to put together their ministry. The first thing they’re thinking of us the stuff that they feel most competent to do like get a business license or start a five, oh one, C three yards. Whatever not, they know how to do it, but they think that’s what folks think. That’s what you have to do first. And of course that’s not what you have to do first right when it comes to the business structure. The first thing you need to do is start speaking to people and serving them to tell to show them that you love them and have a relationship and then tell them about Christ. That’s what you need to do before you do any of the business stuff, but since this video series is about sign up your ministry, we want to make sure we cover everything from. You know when you first have the mission place in your heart by Christ all the way through naming it and developing it and created programs and assessing your programs, etc, and as a part of that we want to talk about the business structure again, so let me sort of you may already know this, but let me go ahead and just give you some sort of baseline business facts about Ministry, number one
in the United States of America. At Christian ministry holds a lot of sort of special quasi business capabilities, even without falling the first piece of paperwork, right because of Thomas Jefferson, and are in in the separation of Church and state. We are permitted in this country to engage in religious activities in whatever way we choose the spreading whichever religion or gospel, we want to choose and doing the way we’d like the only time that it starts to get. I
wrapped up in the legal system. The courts
with business names. Corporations and business licenses is whenever you are engaged in your ministry, and it begins to take in and utilize a certain amount of money, Because then there needs to be accountability for that money. And actually begin to serve more and more people and your risk increases. You may want to protect yourself from lawsuits and other things that may happen. Anybody can file a lawsuit against anybody for any reason, but the way you give yourself protection is in the way that you set up your structure If you’re not engaging in any ministry at the moment than worrying about what business rush you have does not matter Okay. The only time it might matter is if you’re applying for a grant. And the grant says that you need to be a fiber. One, C three, Okay, then to apply for that grant. You gotta go through the steps through corporate paperwork.
Get A A A a tax Id number. Use our tax id number to ask for not for profit status, then take all of that information and include it with your grant application. Cause that point, you’re not for profit corporation. The only difference between an I R designated not for profit charity by the one, C three and a regular corporation is that thought at one C three to the special tax treatment for revenue, which means that when cash comes in the door, it’s not taxed as revenue unless you’re running your ministry as a business, Then if you get caught up in that, that’s what happened with Cbn in there. And they’re a big convention center. At one point. Finally The Irs’s. Hey. There’s means of dollars coming in unique. You need to start paying taxes on this Because you’re running a business. You’re not just preaching the gospel, okay, but in the case of someone that situation that, the wherein. Especially if you’re watching this video, you’re not. You’re not in that position yet right, so I want you to know that you can, just which could help you the most as if you just sit down. And write out a formal document called bylaws and those bylaws say who you are what you’re doing and how you’re going to do it and that gives you your first level of cover Because it means you’re operating under some rules as a Christian ministry. It’s just a document. Nothing fancy. I mean, super simple as that, be legalist, it and then that document of just your by laws talk about how your talked about how your organization is going to operate.
The next level that you would want to go to his eye unless you have to, for a very specific purpose, do not get a business license, because a business license is for for profit activity, and that’s not what you’re doing. If you feel like you need some business paperwork, then go ahead and file with your state corporation Commission, A not for profit corporate listing, okay? We offer a corporate charter as a as a, not as a not for profit now when you found as a not for profit, that doesn’t make it your not for profit, just because you’re saying you’re a Christian ministry. You’re looked at as a not for profit, Much taken money from your ministry, and you’re making your house payment with it. You know you know, if if if your money’s going back in your ministry, going back into your ministry is as long as then, there’s no problem. You don’t need anything, you can take that money spent in a more managed ministry activity, Keep your receipts. If anybody asks years, our corporate bylaws years Receipts of what we’ve been doing this is what we are. We’re a church, were Christian Ministry Church, So this is what we’re doing. No one’s going to question that. And if they do, you’ve got everything there in front of you, but if you want a structure to start to protect yourself, you can through that corporate charter with special language that says that this corporation is not benefiting any one person. Now that does not make you a, not for profit, Just that piece of paper. You take that piece of paper. He I n number, and then you file your not for profit online with the Irs’s. Then you’re a not for profit. Because the only difference between a for profit corporation and a not for profit is it a not for profit corporation does not benefit any one person. Or not. There’s no stockholders that doesn’t mean you can’t take a paycheck. You can do that. That doesn’t mean you can’t pay yourself or pay other people for services you can do that, but nobody owns your ministry. Nobody owns the. Not for profit. You control it, Cause you’re the executive director of the president, but you don’t own it. Because when you file the corporate paper when I B m thousand corporate paperwork, it says we’re gonna to. We’re going to have one hundred million shares, and we’re going to sell their shares when you found not for profit Corporation, say I want to create a corporation like Ib ’em dead, but we have no shareholders. We have zero shareholders. It is run by a board of directors it. It does not have nobody owns. It owns itself and it’s technically owned by the community. Okay, So, If out, so, if you feel like you need to file something, Father corporate paperwork to get the I N. And then falvey Father One C three, We can help you with all that We can definitely help you with all of that. The cost of doing that. Just the fees alone is about five hundred bucks. By the time you pay your corporate charter, get your Yan. It’s a book set up and do your final one, C three, which is like three, seventy five, so preempting my dollars, That’s about a five hundred dollar investment, But you know you can get your military up and running. You can do all the things we talk about in these videos. You can do all things to talk about without
having a photo, one C three or any of that because you’re going to be looked upon as that, and I say the only time you need to be concerned with doing something more formal in terms of your business structure is going to be if you are taking in twenty five. Thousand dollars or more in cash a year. If you’re taking in from the outside, Not money you put in of your own. If you’re taking in more than twenty five thousand dollars a year. Then I say go ahead file the paperwork. Get the Yan. Get the five, oh one, C three, and get yourself buttoned up as a nice, not for profit now as an author property. I do things I keep minutes, and to certain paperwork, new annual filings and the I R S. And stuff You gotta do it a little more complicated, but that’s what you want to do next. Now in certain jurisdictions, if you want to rent a building,
you have to have the building owner will say you have to have a business license, or you cannot rent from me. In that case, Go down, get the business license in the name of the corporation. But then you gotta do these tax filings, because your money’s not for profit, and the people the courthouse hopefully will help you do that, but the bill. You don’t need a business license if he wants up and get the corporate shelter, which also. Helps protect you from some liability. Not all but some liability, otherwise just operate to your bylaws. Create your bylaws. Okay, right Those who we are what we do. Why we’re doing it for Jesus with your name and all that keep your receipts, and if you go over twenty five thousand dollars of outside money, not donations of goods outside money, then you’ll want to go ahead and get your your corporation five, one, C. Three. You can, also. If the donation, I think it’s less than twenty five hundred dollars. You may want to check with your account or the I R S cause. I don’t remember what it isn’t usually five hundred, but he’s twenty five. Now. If the gift is less than twenty five hundred, you can give them a tax receipt. The dude that they gave the donation, and there’ll be able to found that on their taxes, they only need five, oh one, C three evidence from a five, one, C three organization. If it’s more than twenty five hundred. I believe that’s the case. You’ll want to check that. So people get more involved with this and they need you. I say get your ministry going Start ministering to people will provide your service. And if you don’t need all that paperwork at first, don’t do it Just have your tenure bylaws written up. You have any questions. Give me a call. You can find me at three Bishops Dot Com. The phone numbers on the website, and you can be a touch with me. We can do a zoom call about this, but I’m here to help you develop your ministry, and this a video series is one way to do it, so that’s why I have to say about. Business structures okay, so I want to thank you for coming by and watching this video today. Please be sure to click on the subscribe button below If you’re watching this on Youtube and I want you to also mark the bell. So you get notifications. If you’re watching this video somewhere else, head on over to Youtube to street bishops that channel and go ahead and subscribe while you’re there so that you can get additional videos, and you come by our Facebook page at St. Bishops. And so we just want to connect with you and hear from you. Often. You can also write to me at secretary at St. Bishops Dot Com. I have a great day and we look forward to see you in our next video.