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Question:
In forming a youth organization, do we need to be recognized by the state? will we need paper works? How are we going to open a bank account and will that account be subject to taxes?
Answer:

Dear Ana,
Thanks so much for writing to the Tool Box. How wodnerful that you are forming a Youth Organization.
Many Youth Organizations are just informal community organizations that do not have a formal structure or registration with the state.
On the other hand you may wish to become a recongnized non-profit organziation which involves a good deal of paper work.
In the beginning it is rarely needed to become that formal.
You can check with your local bank as to how to set up a bank acciount for such an informal organization.
One way that often works is to affiliate with an existiong non-profit organization who can become your "fiscal conducit" - meaning they manage your money.
See Section Four in the Tool Box: Section 4. Understanding Nonprofit Status and Tax Exemption
Hope this is helpful

Question Date: Sun, 06/22/2014