Church Incorporation

There seems to be a controversy as to why a church would want to incorporate. Besides the obvious advantage of obtaining liability for its members; tax exemption; and other benefits, it is a bit discerning to think that a church, whose founder is Jesus Christ, can nonetheless deem incorporation a necessary means to defy the separation of Church and State as its basic tenet.

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The question then becomes: "Why is church incorporation so prevalent?" While it is certainly true the church is a non profit entity, whose primary focus is to spread the word of God, a conundrum exists. Although there are advantages to incorporate a church for tax exemption purposes, one begs to question the limited liability clause which protects the priests and other religious members of the church.

Filing articles of incorporation for a church is based on the same method as filing articles of incorporation for a business. Basically, a church has to have directors or board members, a mission statement, and record and keep minutes of each meeting. As with new businesses, a church files its articles of corporation with the Secretary of State’s office. Once this has been done, the church can then file for a federal tax ID number or EIN; a bulk mail status application; and all of the other benefits associated with incorporation.

As stated by Mr. Gary North, "Churches not incorporated are already non-taxable… Incorporation is a different issue from a 501(c) 3 non-profit status. When a church incorporates it became a taxable organization. Paragraph 501(c) 3 of the IRS tax code grants a favor and benefit from the State on "not for profit" corporations." He goes on to say, "When a Church incorporates, it must adopt the State mandated organizational structure with having a Board of Trustees. I do not believe a Board of Trustees is a Biblical model for Church leadership and polity. A Board of Elders is closer to the Biblical model. We do not have to ask the Government for permission to worship or to carry out activities we deem appropriate. We are under the jurisdiction of God and subject first and foremost to His Law."

Upon researching church incorporation, it was found there are many online sites willing and able to, for a fee, assist in the incorporation of any church. While most churches today follow this practice, unsettling as it is, there is nothing illegal about it. The point of this ongoing debate is whether or not they should.

This article is not meant to condone nor negate church incorporation, but merely to state the facts as posed. Clearly, the debate will continue as to whether or not it is appropriate for a church to incorporate. For now, at least, the method of incorporation can be easily accomplished by following the rules and regulations of incorporation.