About Doug Mentes, Esq.
Douglas Mentes is an alum of Drake University with a degree in journalism, who has covered news in Washington, D.C., Minneapolis and Salt Lake City. He has a law degree from William Mitchell College of Law and ran his own law firm for more than 10 years in St. Paul, Minnesota, earning designation as a Super Lawyers Rising Star. He practiced in the areas of family law, real estate and probate, handling several successful appeals. He currently covers bankruptcy law for Thomson Reuters.
Articles written by Doug Mentes, Esq.
Filing the IRS Form 1023-EZ?
The Internal Revenue Service (IRS) introduced a new, short-form application for tax-exempt status: IRS Form 1023-EZ. The file form is significantly shorter than the IRS 1023 application and takes substantially less time to fill out. This will especially help smaller nonprofits, but organizations may be surprised to learn that the IRS’ acceptance of the 1023-EZ does not assure compliance with the Internal Revenue Code and regulations. Who Can File the 1023-EZ? To be eligible to file for tax …
Five Steps To Take Before a Nonprofit Applies for Tax-Exempt Status
For a nonprofit to obtain federal tax-exempt status from the Internal Revenue Service (IRS) under section 501(c)(3), it must submit IRS Form 1023, pay the filing fee, and await a determination letter. However, there are several significant steps nonprofits must take before the application process, as nonprofit attorney and advisor Gene Takagi explains. 1. Choose Whether To Incorporate “You’re going to first have to determine what form of entity you’re going to operate. That entity is the …
Shareholder Rights in a Private Corporation
Shareholder rights are an issue for large and small corporations. Stock shares provide a secured ownership interest in a business. Shareholders of the corporation are the owners of the company. Larger corporations offer different classes of stock, while smaller organizations may offer only one class of stock. The most common forms of ownership interest in a corporation are common stock, preferred stock, and bonds. An agreement between the bondholder and the corporation determines a bondholder's …
What Corporate Records Are Shareholders Entitled To?
There may be nothing more important for a corporate shareholder than having the ability to evaluate the financial condition of the corporation they’ve invested in. But to perform that evaluation, the shareholder needs information. Fortunately, under Georgia law, shareholders are entitled to records and other information from the corporations they invest in — within limits. If shareholders want the right of inspection to more expansive corporate information, they will have to demonstrate a …
Does My Business Need Bylaws?
Bylaws are legal documents that outline rules that govern the day-to-day operations of an organization or business entity. They define the responsibilities for the important positions, such as corporate officers, within the organization and explain how the organization can act under a variety of situations. For Colorado nonprofits organizations, bylaws may be required as part of the process for obtaining tax-exempt status from the IRS. Otherwise, for Colorado for-profit corporations, bylaws are …
How Do I Form a PAC?
Having the power to influence an election—whether for city council, state legislator, or president—is seen as beneficial to individuals, business owners, nonprofits, corporations, and trade associations. Contributing to a candidate is one direct way to help influence the election outcome, but there are contribution limits under federal election law, as well as Massachusetts state law. If an individual or group of people want to increase their contributions or perhaps communicate their own …
How To Hold a Business Owner Personally Liable
Liability protection is the most significant benefit to incorporation or forming a limited liability company (LLC). However, that protection can be lost if owners take advantage of the corporate entity and business structure. New Jersey case law contains a lengthy list of examples of the various ways corporate owners have attempted to use the corporate entity to skirt their legal obligations. That conduct then allows creditors access to the personal assets of the business owners. To determine …
How Do I Maintain Tax-Exempt Status?
Obtaining tax-exempt status for nonprofit organizations can be a lengthy and time-intensive process. And maintaining that status can also be a lot of work, as the nonprofit must, at all times, continue to meet its federal statutory obligations. This includes avoidance of: Serving private interests instead of its exempt purpose; Income or assets benefiting organization insiders; Excessive lobbying; Political campaigning; and Earning too much unrelated business income from nonexempt activities. …
When Is a Nonprofit Lobbying?
It’s perfectly legal for section 501(c)(3) organizations to lobby. The allowable amount of that lobbying will vary, however, depending on whether a nonprofit has elected under section 501(h) to use the expenditure test or remain with the default substantial part test. Organizations can, though, get more bang for their buck by understanding how the Internal Revenue Service (IRS) distinguishes lobbying from activities that are not grassroots lobbying, measuring lobbying or direct lobbying — …
Can Nonprofits Endorse Politicians?
Nonprofit organizations are often concerned about matters of public policy and advocacy since the nonprofit may be directly involved in the policy issues. Having informed nonprofit entities involved in policy discussions is often a benefit to the public, but before straying into public policy, 501(c)(3) organizations must understand the Internal Revenue Service (IRS) rules — one of the most basic being that the activities of endorsing politicians and lobbying are distinct. Lobbying activities …
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