Smart business people plan as much as possible before they act. That way they don't waste their time chasing illusions.

QUESTION.
I incorporated an NPO by the end of last year. It was incorporated as a Chamber of Commerce in the State of Delaware. I have not made it public yet because I am still working its business plan, the Web site, etc. I have not gotten a bank account for it or any money from any source for its operation. I just applied for the EIN. I already paid the Delaware taxes but I do not know what form I need to fill to pay the 2007 federal taxes? I would appreciate it if you could let me know what to do. Thank you very much for your help.

ANSWER.
Are you from New Jersey? Or from Delaware? Are you forming a nonprofit? Or a for-profit? I'm a little confused what you are up to.

To register a corporation in Delaware you need to have a bona fide office in that state. You can probably hire a law firm or some similar entity to act as your bona fide office, but that usually costs money. If you do that, but you really are doing "business" in New Jersey, then you have to register as a foreign corporation in New Jersey. And if you are really doing business in New Jersey, and not in Delaware, then you would only owe taxes in New Jersey since that is where the revenue would be earned. Delaware might have filing and registration fees, though. New Jersey will definitely have filing and registration fees.

But you say you are forming a nonprofit. You shouldn't owe any taxes if that is really the case. You may owe filing fees and registration fees, but technically those are not taxes.

Without having opened your doors yet there is no way you owe any taxes to Uncle Sam. If you are a for-profit, then you would have to file a Form 1120. But you say you are a nonprofit. In that case you just file an information return called Form 990. See

http://www.irs.gov/pub/irs-pdf/f990.pdf and http://www.irs.gov/pub/irs-pdf/i990-ez.pdf.

See also, http://www.irs.gov/pub/irs-pdf/p557.pdf and, http://www.irs.gov/pub/irs-pdf/p598.pdf.

I suggest you contact your local SCORE chapter and schedule a face-to-face session with two volunteers there to discuss your venture. It doesn't sound like you know what you are getting involved in. The secret of success is to know what you are doing BEFORE you do it. See http://www.score.org/findscore/chapter_maps.html and type your home zip code in the appropriate slot.

I hope my comments are helpful. Good luck! Regards, -Jeff
Jeff Lippincott
SCORE.org Counselor
Princeton, NJ
scoreprinceton @ aol.com
www.scoreprinceton.org
www.jlippin.com