(We do not give legal advice, but the following has been garnered
from various dependable sources
and we suggest you examine and verify these comments and quotes)

The First Amendment to the Constitution of the United States of America prohibits the federal government from legislating for or against religion - "Congress shall make no law respecting the establishment of religion, or prohibiting the free exercise thereof...." NO LAW MEANS NO LAW!

The Corporation Sole is a non-profit, tax-exempt corporation under 508 of IRS code. It is an independent spiritual assembly/organization, recognized by almost all governments. Once you are established in writing, your income is tax-free to you and your assets cannot be encumbered with a property tax. Your earnings are also tax-free and are considered the income of the religious organization.

What about the I.R.S.? The Church is exempt by right and does not have to petition any government agency for recognition of exempt status. In fact, it states in 1.508-1(a)(4) that the church is exempt whether it files notice or not. The question might arise when an annual return is demanded of every other organization or individual, does a corporation sole or church also have to file? According to the I.R.S.:-

Under Title 26 § 6033, your church or religious order has complete immunity to disclosure. It is not necessary for you to maintain records of any kind except for your own purpose and reasons.

If there is NO LAW whatsoever you can establish a church and operate an organization without any liability to any agency (as far as establishment of recognition of exempt status is concerned); you are also legally exempted from filing any return with any government agency for any reason.

You should not register under Section 501.

"There are significant differences between a 501(c)(3) church and a CORPORATION SOLE. A 501(c)(3) church has applied to the IRS for the privilege of tax exemption and submitted its articles to them for approval, and it must maintain a board of directors, minutes and record keeping. It must report its income and expenditures and is open to auditing by the IRS just for the privilege of being tax exempt and accepting tax-deductible donations. ALL of the privileges "granted" by the IRS to the 501(c)(3) church are inherent to a church without making application and requesting the privilege. IRS Publication 526: a church is a "qualified organization" and able to receive tax-deductible donations at the 50% rate and need NOT apply for this recognition. All CORPORATION SOLE paperwork, including the articles, is kept confidential. CORPORATION SOLE needs no board of directors, trustees, or minutes and has no reporting. It cannot be audited. CORPORATION SOLE is a contract with the Creator; 501(c)(3) is a contract with a man-made government."

You might also read for information purposes the IRS "Tax Guide for Churches and Religious Organisations", [This is an Adobe Acrobat document] but realise that this covers ONLY churches under Section 501(c)3 and NOT corporations sole, which fall under Section 508.

Common Law Corporation Sole Return to the COMMON LAW CORPORATION SOLE CONTENTS Page


© Dr Milson Macleod Jan 2000

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