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Community Law Center
Pro Bono
E-News
June 2005
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The Pro Bono Project of the Community Law Center provides Non Profit
Organizations in the Baltimore area with pro bono and low cost legal assistance.
Please feel free to contact Suzanne Bailey at 410-366-0922 if you should have
any questions about becoming a client of the Community Law Center's Pro Bono
Project or our new Small Business Legal Services Project. We are here to serve
you.
The Community Law Center welcomes
Kelly
Pfeifer, Esq. as Directing Attorney for the Pro Bono Project.
She is also a staff attorney for the Environmental Justice
Project. Kelly is also a registered landscape architect and
worked as a land planner in the metropolitan Baltimore area
prior to becoming an attorney. Her professional experience
includes working with nonprofits, government agencies, community
groups and the Community Development Clinic at the University of
Maryland School of Law. Kelly, her husband and their two beagles
live in Canton, where she is a member of the Canton Dog Park
Committee and a block representative.
The Department of Planning for the City of
Baltimore provides a directory of all community associations in
the city area on its website at
http://www.ci.baltimore.md.us/government/planning/cad.html.
A hard copy of the directory can also be requested by e-mail or
phone - or 410-396-8356. Consider
whose job it should be to keep this directory updated with your
organization’s information. Then, add this duty to your
organization’s by-laws to ensure that the data is current and
correct. You never know who may be trying to contact you!
The Community Law Center is
pleased to announce that it has been chosen as a recipient of a
2005 Maryland Pro Bono Service Award. This award is a symbol of
the Law Center's commitment and dedication to the legal
profession and is recognition for helping to ensure equal access
to justice. The Law Center is very grateful for the appreciation
and recognition of its pro bono efforts though this award. The
awards ceremony will take place on June 18 at the Maryland State
Bar Association Annual Meeting and the award will be presented
by Judge Robert M. Bell, Chief Judge, Maryland Court of Appeals.
The Community Law
Center is proud to announce the latest addition to its array of
legal services available to the residents of the Greater
Baltimore area. The Law Center’s Small Business Legal Services
Project provides pro bono and low cost legal services to
small businesses and micro enterprises in the Greater
Baltimore region.
Our
Services for Business Owners
o
Entity Formation (for
example, forming a corporation or LLC)
o
Intellectual Property
Protection (trademark, copyright, patent)
o
General Contract
Drafting/Review
o
Assistance with Financing
Documents and Negotiations
o
General Business Matters
How
does a small business owner or micro entrepreneur become a
client?
Each
potential client must complete a
Business Information Form,
which the Small Business
Legal Services Project
Attorney will use to determine the applicant’s eligibility.
When making the eligibility determination, the Attorney will
consider both the entrepreneur’s income and the entrepreneur’s
potential impact on the surrounding community. If eligible, the
Attorney will conduct an in-person interview to ascertain the
scope of the potential client’s legal needs. In cases that
involve lawsuits or that are otherwise beyond the Small Business
Legal Services Project’s scope of services, the Project attorney
will refer the case to another pro-bono or low-cost legal
service provider.
What
fees are required?
Each client
will be required to pay fees charged by the state and federal
agencies. The fees for the Attorney’s time will be heavily
discounted and based upon each client’s needs and the
information set forth in the Business Information Form. In some
cases, the Client will be asked to pay an upfront fee or
retainer.
You have a great idea for a business and
you are excited to begin. The first question that comes to
mind is, “Where do I start?” Below are some helpful links to
assist you in achieving your dream of owning a successful small
business. When reading through this information, please keep in
mind that the Small Business Legal Services Project can
assist you with many of the tasks that lay before you such as
contract review, entity formation, trademark applications, etc.
Enjoy surfing and please contact us with any questions!
Starting a Small Business in
Maryland
http://www.dat.state.md.us/sdatweb/checklist.html
http://www.blis.state.md.us/BusinessStartup.aspx
Business Plans, Training
www.towson.edu/sbdc
http://www.sba.gov/
Morgan State University
Entrepreneurial Development and Assistance
Center
Licensing/Permits
http://blis.state.md.us
http://www.baltimorehousing.org/index/permits.asp
Micro enterprise
http://www.emicromaryland.com/ehome.asp
Please support our Small Business
clients! The businesses that we serve range from graphic
designers to hair salons to job training programs. These
individuals are pursuing their dreams and enriching the
neighborhoods of Baltimore and surrounding areas! Visit them today!
www.salonwestminster.com
http://www.caroline-center.org/
http://www.pcgstones.com/
www.organizetechnology.com
www.katetallentdesign.com
http://www.bubandfeather.com/
http://www.blowupcolorlab.com/
http://www.bonnetworks.com/
http://www.pnatic.com/
http://www.unoakable.com/
Toddler's First
LLC 410-638-5295
My organization wants to obtain its 501(c)(3)
tax-exempt status; What do you do? The term 501(c)(3) refers to the section of
the IRS code that addresses organizations with charitable
purposes. An organization has to meet certain criteria to be
given the distinction of being a non-profit by the IRS. Once
an organization has earned this distinction, however, donations
from donors are tax deductible. There are many items that need
to be in place before the application process can be pursued and
the Law Center's Non-Profit Legal Services Project can assist
with this application process.
A. ORGANIZE. You should have
a core group of people committed to a common purpose and who
understand how they will establish the organization and raise
the money to carry out the planned activities. The group should
develop a basic working plan for the organization or project by setting its
goals, planning activities and developing a fundraising plan.
1. Create Articles of Incorporation (also called a Charter):
This document, when filed with the State creates a new legal
entity.
2. File the Articles of Incorporation with the State of
Maryland (as a non-stock corporation)
Department of Assessment and Taxation
Charter Room 809
301 W. Preston Street
Baltimore, Maryland 21201-2395
The cost is $100.00 (Fees are subject to change, check their
website
http://www.dat.state.md.us before you go.)
3. Draft the Bylaws. The purpose of bylaws is to lay out the
rules of conduct and authority for the board of directors,
officers and members
4. Organizational Meeting. The organizational meeting is the
first official meeting of the new corporation. The persons who
must be present or sign the minutes are the directors named in
the articles of incorporation. By the time you hold the
organizational meeting, you should have a diverse and committed
group as the board of directors. An all-family or one-person
board will not pass muster with the Internal Revenue Service.
Bylaws should be in at least draft form.
5. Federal Employer Identification Number (EIN). This is like
a Social Security number for an organization. Every organization
needs such a number in order to open a bank account or transact
business with the federal government - even if there will never
be any employees. To get an EIN, you must file an "Application
for Federal Employer Identification Number" Form SS-4, with the
IRS.
To get IRS forms call: (800) 829-3676 or visit
http://www.irs.gov
6. IRS Tax Exemption. Nonprofit does not mean tax exempt. An
organization can be incorporated and nonprofit without being tax
exempt. Most beginning small businesses do not make a profit.
The only way an organization can be determined to be tax exempt
is to make an application to the IRS. There are two exceptions
to the application requirement:
1) The organization's gross revenues normally do not exceed
$5000 or
2) The organization is a church or an integrated auxiliary of a
church.
Most organizations applying for tax exempt
status will seek a 501(c)(3) as a charitable, educational
organization. In a 501(c)(3) organization, the IRS will require
a board of directors to have an arms-length relationship with
the organization and not benefit from its services.
B. FEES AND
PROCESSING TIME. The cost to apply for tax exempt status is
$150 for an organization with a projected budget of under
$10,000 per year and $500 for organizations projecting budgets
of more than $10,000. Calling the IRS at (800) 829-3676 to
check on any fee changes is recommended. IRS form to get -
Application for Recognition of Exemption Under Section 501(c)(3)
Package 1023. (This is a really long form - hence the term
"package." You need to have a fully developed business plan to
complete this paperwork.) The IRS may mail your paperwork back
to you and ask you for additional information or to clarify a
response. It normally takes a minimum of 3 months from start to
finish to complete the process. Once you have received your IRS
determination letter, you are a nonprofit organization.
Unable to open links e-mail to
mail@communitylaw.org
The Community Law Center Website is under
construction please watch for updates
Last Updated:
September 25, 2006 ©
2006 Community Law Center, Inc. Baltimore, Maryland
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The Community Law Center, Inc.
