Re: [atlarge-discuss] incorporation - misinformation debunked

["Ron Sherwood" <sherwood@islands.vi>]

Thank you, Eric, for clarifying the difference between the requirements for
incorporation and the requirements for compliance with IRS regulations in
the US.

In addition to the 50 states that you mentioned, there are numerous
off-shore territories and possessions.  These additional American entities
have various political and fiscal relationships with the US.  Puerto Rico,
for example, with a population of 3.2 million, has commonwealth status (they
are within the US Customs Zone).  Other territories are outside of the US
Customs Zone and have their own constitution, but have reciprocal or mirror
tax systems that are based upon the US Internal Revenue Service. All Federal
tax laws apply (including the George Bush tax cuts).

When Jeff writes of a 501 (c)(3) corporation, he is primarily referring to
the IRS tax status, not the method of incorporation.  Because Federal law
prevails, any 501 (c)(3) corp. is subject to the United States Internal
Revenue Service regulations no matter where it is incorporated. It is the
IRS that approves (or otherwise) the corporate entity for this tax exempt
status.

A recent raid, by the IRS, of an EDC corporation in St. Croix, brought home
the fact of Federal jurisdiction.  Local law permits the forgiveness of
certain taxes for corporations that (among other requirements) establish
residence in the USVI.  Residence is determined by a permanent presence that
exceeds 30 days, ownership or long term lease of property, voter
registration and transfer of driver license by the principles of the
corporation. These requirements fall short of the IRS requirements for
off-shore residency which, among other things, is residence outside of the
United States for more than six months of any given tax year.  The raid was
to gain evidence that some tax beneficiaries (although well within the local
law) did not meet the IRS residency requirements.

I repeat, setting up a global corporation in the US and claiming tax
exemption for donors through a 501 (c)(3) IRS certification, is not a trivia
l affair.

Ron Sherwood


----- Original Message -----
From: "Eric Dierker" <eric@hi-tek.com>
To: <jefftttt@txucom.net>
Cc: <atlarge-discuss@lists.fitug.de>
Sent: Sunday, July 06, 2003 5:20 PM
Subject: RE: [atlarge-discuss] incorporation - misinformation debunked


> I suggest to all this is eroneous at best.  There is no US law governing
> incorporation, "agents" are for service of process, in most
"jurisdictions"
> yet in some it is different.
> Contrary to world belief the US is made up of 50 different states, that is
> why it is called a republic, For wich it stands.
> The IRS is an entirely different matter. Who is ICANN's agent? I am the
> registered IRS agent for many companies but you cannot find out who.
However
> an agent for service of process is entirely public in each state.
> e
>
> > @Large,
> >
> > The term "Registered Agent" in the US with regard to not-for-profit
> > organizations means simply an individual listed as the primary contact
> > with the IRS.  While some might charge, in my experience it would be an
> > individual for whom there would be small likelihood of them changing
> > regular mailing address (the main reason for having one) and who would
> > not charge the corporation for the service.  Typically it is one of the
> > "founders" of the incorporated entity.  It might also be a CPA or other
> > financial type depending on the size and structure of the entity.  My
> > past experience has been that a volunteer with strong interest in the
> > future of the organization donates the time and effort to be the
> > "Registered Agent" and forwards any snail mails to the appropriate
> > current address.  A Registered Agent is named in the incorporation
> > papers, and may be changed as necessary by notification of the proper
> > authorities, primarily the IRS....
> > ===============
> > b.  Registered Agent and Office
> >     The purpose of appointing an agent is to provide an individual upon
> > whom service of process may be made and also a person to whom
> > correspondence from the Secretary of State can be sent. This entity
> > must be either a natural person and a resident of (the State where
> > incorporated) or a corporation with a purpose clause permitting it to
> > be an agent for other corporations, with an office in (the State where
> > incorporated).
> > ===============
> >
> > Sincerely,
> >
> > Jeff Holt
> > Jefftttt@txucom.net
> > www.tejas-info-services.com


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