Local FinancialTrainingFlorida League Financial Outline

February 28, 2019

This information was handed out at the FOSER Financial Training Clinic in St. Cloud, FL February 2019.

This information was last updated February 24, 2019.

A printable version is available here.

START-UP ORGANIZATION

  1. Incorporate using an attorney OR generic Article of Incorporation at sunbiz.org.
    1. See Florida Little League District 11, Inc. (document number N14000010004) for example.
  2. A Federal Identification Number (FEIN) is required.
    1. Apply for an FEIN on the IRS website, irs.gov.
    2. Note that if you want to fall under the Little League Baseball non-profit status, your fiscal year must align with Little League Baseball’s. This is October 1st thru September 30.
  3. Setup a corporate checking account with the new FEIN at a bank of your choosing.
  4. Apply for non-profit status:
    1. Little League International can approve you for this status.
      1. You must apply by submitting a Letter of Intent to Little League International
      2. Must have a matching fiscal year to LLB (Oct. 1 – Sept. 30)
    2. IRS Form 1023EZ
      1. https://www.irs.gov/forms-pubs/about-form-1023-ez
      2. This application has a fee of $400
  5. File an application with the Florida Department of Revenue for a Consumer’s Certificate of Exemption, form DR-5.
    1. This will allow your organization to be sale-tax exempt from purchases.
  6. File an application with Florida Department of Agriculture and Consumer Services.
    1. You must register with FDACS before engaging in fundraising or solicitation activities.
    2. Some leagues & most districts can submit a short form application. https://forms.freshfromflorida.com/10110.pdf
    3. Most leagues & some districts need to submit a long form application. https://forms.freshfromflorida.com/10100.pdf
    4. If you are a new organization with no previous fiscal information, complete line 26 with your intended budget.
  7. Prepare your organization Constitution (https://www.littleleague.org/downloads/constitution-sample/) and By-Laws.
    1. Both need to be submitted to your District Administrator and the Southeast Region Little League office for approval.

Existing Organizations

  1. Annual Filings:
    1. State of Florida annual reporting – sunbiz.org
      1. Currently a filing fee of $61.25
    2. IRS Form 990N, 990-EZ, or 990
      1. Due the 15th day of the fifth month after your fiscal year.
      2. Failure to file will result in the revocation of your tax exempt status.
    3. Florida Department of Agriculture and Consumer Services Form FDACS 10110 or Form FDACS 10100
    4. Prepare an annual budget for Board of Director approval.
      1. Annual budget should be review at your annual membership meeting
    5. League Constitution should be review annually
      1. Constitutions should be submitted to the Southeast Region office every 2 years.

Delinquent Organizations

If your status has been revoked by the IRS:

  1. Streamlined Retroactive Reinstatement:
    1. Retroactive Reinstatement Process Within 15 Months:
      1. Have not previously had their tax-exempt status automatically revoked
      2. Complete and submit Form 1023 of Form 1023-EZ with the appropriate user fee not later than 15 months after the date of the IRS Revocation Notice Letter or the date the organization appeared on the Revocation List on the IRS website.
      3. Write “Revenue Procedure 2014-11, Steamlined Retroactive Reinstatement” on top of the Form 1023 or Form 1023-EZ
      4. Mail application and user fee to Internal Revenue Service, PO Box 12192, Covington, KY 41012-0192. Include copies of Form 990 or 990-EZ with the application.
      5. File paper Forms 990, 990-EZ, or 990-N and write “Retroactive Reinstatement” of the Forms 990, 990-EZ, or 990-N and mail them to: Department of the Treasury, Internal Revenue Service, Ogden, UT 84201-0027
      6. Include with the reinstatement application a statement establishing that the organization had reasonable cause for its failure to file the required annual return(s) for at least one of the three consecutive years in which it failed to file with the IRS.
        1. A reasonable cause statement establishes that an organization exercised ordinary business care and prudence in determining and attempting to comply with its annual reporting requirement. The statement should have a detailed description of all the facts and circumstances about why the organization failed to file, how it discovered the failure, and the steps it has taken to avoid or mitigate future failures.
      7. Include with the reinstatement application a statement confirming that it has filed any delinquent required tax returns for those years and enclose copies of those tax returns.
    2. Retroactive Reinstatement Process After 15 Months:
      1. Satisfy all of the requirements listed above for Reinstatement Within 15 Months
      2. Include with the reinstatement application a statement establishing that the organization had reasonable cause for its failure to file the required annual return(s) for all three consecutive years in which it failed to file with the IRS.

If an organization fails to file its Florida Annual Report, or files that report late, it will be subject to a late fee of up to $400. Additionally, if the annual report continues to be delinquent, the State of Florida will administratively dissolve your corporation and your organization will no longer benefit from any shielding of liability normally allowed a corporation or any other corporate benefits.

Hiring of Employees

Not only does the hiring of employees require certain US Department of Labor compliance (minimum wage, nondiscrimination on hiring, etc.) there are a multitude of payroll tax returns to file:

  • Form 941 (Quarterly Employer Payroll Tax Return) or Form 944 (Annual Employer Payroll Tax Return). The annual form is available for employers who have no more than $1,000 per year in total payroll tax liability (federal withholding + FICA + medicare taxes)
  • Form(s) W-2 and W-3 Annual Wage and Tax Statements to Employees; these statements are due to be filed January 31 each year.
  • Unemployment tax is optional and generally not elected by non-profit entities. However, if the organization elects to pay into the unemployment fund, Forms RT-6 and 940 would be required to file.
  • Employees must complete Form W-4 and give that signed form to their employer. We strongly suggest receiving that form, plus a copy of their photo ID and social security card, prior to beginning employment and their first paycheck.
  • To establish that your organization is an employer, you would indicate this when applying for your FEIN, and if your organization elects to pay into the unemployment tax fund, you need to file Form DR-1 online with the Florida Department of Revenue.

Hiring of Independent Contracts

These generally are individuals who are not employees. Individuals who are independent contractors should complete Form W-9 and give that signed form to your organization. We strongly suggest receiving that form, plus a copy of their photo ID and social security card, before their first paycheck.

Form 1099-MISC are required to be filed for any individual your organization paid $600 or more. These forms are due January 31 each year.

Florida Sales Tax Filing

If your organization sells goods or services to the public, you are required to collect and remit Florida Sales Tax to the Florida Department of Revenue. For example, if your organization has a concession stand that sells drinks and food items to the general public (players, parents, coaches, board members, etc.) your organization must register online with the State of Florida.

This includes leasing your concession facilities to an outside source, unless that outside source is another non-profit entity.

ABOUT FLORIDA DA ASSOCIATION

2019-FLLL-Gray

The Florida District Administrators Association for Little League Baseball is the governing body for all Little League Baseball & Softball in the State of Florida. The FLDAA is made up of the 27 DA's from the 27 districts in Florida.

INSTAGRAM

The access_token provided is invalid.

© 2019 Little League Florida DA Association