The process of setting up a non-profit organization and becoming a tax-exempt organization in the US Virgin Islands is relatively straightforward. The incorporation process is done through the office of the Secretary of State, while the IRS grants the tax exemption. To be officially classified as a non-profit or tax-exempt company, your organization must first submit the appropriate applications. This process takes into account many of the factors described above, and to ensure that you are making the best decision and following the proper procedures, it is best to seek the advice of a qualified and experienced business lawyer. When considering the issue of taxes, one of the most common points that need to be clarified is the distinction between having the status of a non-profit organization and being exempt from taxes.
An organization may have both options, but a non-profit organization is not automatically exempt from tax, and vice versa. Before an organization can apply for tax exemption, it must first be recognized as a non-profit organization. Being a non-profit organization doesn't mean that an organization can't make money. The point is that a non-profit organization does not exist simply to earn money for its members, but rather that the profits made must return to the organization. The territorial government grants non-profit organization status instead of the federal government.
Nonprofit and tax-exempt states offer certain advantages, such as contracting with the territorial government, using reduced postal rates, or requesting a tax exemption. Especially for organizations that are just starting out, the time, energy, and money needed to obtain non-profit, tax-exempt status can be a deterrent, and it might be best to focus first on establishing the operations and history of the organization. For groups that have existed for a long time, have had some success and intend to continue operating and growing in the near future, it might be a good idea to obtain non-profit, tax-exempt organization status. This is particularly true if the organization intends to apply for grants or expects to do a lot of business selling goods and services in the future. Separating your organization from the rest is an important part of establishing yourself in your community. Ministry of Health and Social Development 33 Admin Drive, second floor, West Atrium, Wickhams Cay I Central Administration Building, Road Town, Tortola Virgin Islands (Great Britain) VG1110 is responsible for processing registration requests for non-profit organizations.
Its statutes are a set of rules adopted by your organization to regulate its affairs and the behavior of its members.