Forgive me if this post is in the wrong place...if it is please let me know...but I have a question about taking money for dues, bank accounts, taxes, etc.
I'm pretty sure the general answer is going to be "find out the laws in your local area" but I'm hoping for a little guidance.
I have recently started a martial "club" under the auspices of my national federation. It is a "not for profit" meaning I'm not making a salary and am actually paying dues myself.
All monthly funds collected go toward paying rent on the building where we work out. We are covered by the facility's insurance and some of the money we pay in rent, obviously, goes towards that. There is some "left over" money which will go into a club fund to help pay for high ranking instructors to come train us, equipment, travel expenses when we travel to other dojos, etc.
Here's my question:
What do I need to do to set up a bank account for the club fund? I'm worried about the IRS seeing this as personal income and me having to pay taxes on it. Will I have to pay taxes on it? Do I need to set up an LLC, or file Articles of Incorporation, etc.
I'm really kind of a babe in the woods/deer in headlights with all this stuff.
Any direction/advice anyone could give would be most appreciated.
Thanks,
Jim Mahanes