An Administrator's Guide to California Private School Law

Chapter 2 - Governance

tax. 11 Schools that are incorporated as non-profit public benefit or religious corporations are eligible to apply. Schools that have already received a federal determination letter of tax-exempt status may apply for tax-exempt status under California law by submitting Form FTB 3500A Submission of Exemption Request to the California Franchise Tax Board. 12 (Schools that have not received a federal determination letter may still apply for tax-exempt status under California law by submitting Form FTB 3500 Exemption Application to the California Franchise Tax Board and complying with specific information requirements, including submitting a copy of the Articles of Incorporation, Bylaws and certain financial data.)

Once a school obtains tax-exempt status from the federal and state governments, it may still need to obtain an exemption from property tax from the county in which the school is located.

LCW Practice Advisor

D. A RTICLES O F I NCORPORATION The Articles of Incorporation create the school as a legal nonprofit corporate entity. They establish the specific corporate form that a school will take (e.g., nonprofit public benefit corporation or nonprofit religious corporation). The Articles must be filed with the California Secretary of State. 1. M ANDATORY P ROVISIONS The Articles of Incorporation of every Nonprofit Corporation must include the following provisions 13 :  Name of the corporation.  The specific purpose of the corporation (For Nonprofit Public Benefit Corporations only).

 Statement that the corporation is a specific type of nonprofit corporation using the statutory language (e.g., Nonprofit Public Benefit or Nonprofit Religious Corporation).  Name of the corporation’s initial agent for service of process.  If the initial agent for service of process is a natural person, the person’s complete California business or residence street address.  The initial street address of the corporation, and if the initial mailing address of the corporation, if different from the initial street address.

An Administrator’s Guide to California Private School Law ©2019 Liebert Cassidy Whitmore 28