I recently became a for real minister for the Universal Life Church. They said I could legally start my own church with tax exempt status. I’ve never started any kind of venture before, so I wouldn’t even know where to start.
Can anyone give me some advise on how to set up a church legally and is it necessary that you have an actual storefront type location and what kind of things you could offer for ‘donations only’ of course. In other words, how do the big boys like Falwell and Benny Hinn do it?
The good news is that tax-exempt status is assumed by default. You just have to avoid breaking rules (substantial UBI, and political contributions being two examples). You are not required to obtain a formal Letter of Determination to prove your status (however, savvy donors and government entities may require that you obtain it before they will help you)*. Churches do not have to file the annual 990, but might have to file 990T for UBI, and are generally subject to payroll filings and requirements.
If you are part of a group of churches, they may have a group exemption available for you. Ask them about that.
In any event, the process is going to start at your state level. I’d call your secretary of state or equivalent state office about your options and requirements. Every state is different. Make sure you emphasize that you’re a church - churches usually have different rules than other nonprofits. Check with your city and/or county to see if they have registration requirements. (In Washington, for example, nonprofit incorporation is recommended, but not mandatory. The Charitable Solicitations registration is mandatory if you’re asking the public for donations. City registrations vary, but are often mandatory. A state business license is necessary if you have payroll or if you have any activities subject to sales tax or business taxes.)
Generally, there is no problem with having the church officially based out of a home, but that’s a local issue.
I’d need a better example of what you mean by offering things for “donation only” but one of the basic principles of nonprofits is that the donation is reduced by the fair market value of any consideration received. If PBS offers you a free book with your $150 donation, you’ll usually see your receipt itemized to show, say, $105 charitable donation and $45 consideration received. Or a $200 per-person charity dinner might have $30 consideration received for the meal. Depending on your local rules, these may even be subject to sales tax.