How to Incorporate
A corporation is a legal entity that can do anything a person can do. Think of it as an artificial person. It can buy and sell real estate, bring a lawsuit and be sued, or anything else that a natural person can do. Unlike a person, though, a corporation has perpetual life, which means it can go on forever.
There are many types of corporations in business: publicly held corporations, domestic corporations, foreign corporations, for-profit corporations, non-profit corporations, limited liability corporations, and private corporations, to name a few. Regardless of the type, perhaps the greatest advantage of a corporation is limited liability.
Lambda Psi Rho, Incorporated
To be incorporated, it is required that each chapter, including the alumni chapter, to be active, registered corporation in the state where they are located. We are also a registered non-profit organization. Generally, there will be one corporation for each Lambda Psi Rho chapter. The name of the corporation will be something as followed “Lambda Psi Rho Fraternity, Inc. of the University of Nevada, Reno”
In some cases, there may be a need for separate corporations for the collegiate chapters and other chapters following, however, this is uncommon.
How To Become a Corporation
Incorporation is the process of becoming a corporation in your state. Since the process varies from state to state, you will need further clarification for your situation. But here are the general steps that you need to follow:
Every state has a department, usually part of the Secretary of State, that is responsible for corporations. Contact this department to see what the requirements are for starting a tax-exempt corporation. You are probably going to need:
Send a copy of your state certificate of incorporation to the National board so that it can be filed in your chapter's permanent file.
Complete and file Form SS-4 with the Internal Revenue Service in order to receive your Federal Employer Identification Number (FEIN). Send this number to the Offices of the Grand Chapter so we can add your FEIN to our subordinate group list so that you will be exempt from federal taxes. This FEIN is the number you need in order to open a checking account at a local bank.
Maintaining Corporate Status and becoming a Non-Profit Organization
Usually, you will be required to file an annual report and pay an annual fee in order to maintain registration as an active, tax-exempt corporation.
Use this FEIN to also become a non-profit organization through your Secretary of State website.