My question involves business law in the state of: NH
A friend of mine and I are interested in creating an association and we are interested in charging membership fees for the express purpose of covering operating costs explicitly limited to:
- Internet domain registration
- web site hosting fees
- fees charged by the secretary of state for registering the title.
- any fees charged by the IRS or state in regards to filings
We are not paying ourselves or any other officers, nor are we paying any staff. I am aware of IRS form 1023 and intend to file it.
Are we entitled to collect membership fees for these expressed purposes, holding them in a bank account, without any state or federal tax consequences?
At the end of the year, if we carry a surplus (oh boy!) , will that be susceptible to a BET tax? I'm seeing operating revenue of far less than $1,000 per year, and expenses to match.
Thanks for your insight.