This is the official website of the American Bop Association. All other ABA websites are unauthorized.
Starting a Dance Club
It all begins with an idea and a love of dancing. Here we will give you some starting points to set up a non-profit dance club. After you have your tax-exempt status be sure to become a member of the American Bop Association. A membership with us will get you greatly discounted music licensing which you’ll need to keep your members on the dance floor.
IRS Publication 557 - Tax Exempt Status Information
This document is your first step in determining the type of tax exempt status you are going to file for. Generally dance clubs are either 501(c)(4), a Social Welfare Organization or 501(c)(3), a charitable organization. There are advantages and disadvantages to each but for the most part you can ignore all the other exempt oganization types.
This link will take you to the IRS website page that shows the different types of tax exempt organizations. You can click on each type of organization to find out more about the requirements.
Types of Tax Exempt Organizations
State law governs nonprofit status, which is determined by an organization’s articles of incorporation or trust documents. Federal law governs tax-exempt status. The Internal Revenue Code specifically refers to exemption from federal income tax. This link will take you to the IRS page that will have links to explain a corporation and an association. You must decide which is appropriate for your club. Being a corporation does not mean you are a company in the traditional sense.
Before Applying for Tax Exempt Status
Once you have followed the steps in the “Before Applying” link above then you will need to determine what type of tax-exempt status you want.
Applying for Tax Exempt Status
State government websites with useful information for tax-exempt organizations, including registration requirements for charities, taxation, information for employers, and more.
State Links for Exempt Organizations
Applying for an EIN - Employer ID Number
Even though you have no employees you still need an EIN. Get an EIN to apply for tax-exempt status and file returns. Be sure you are a legally formed organization before applying for an EIN.
Exempt organizations are required to file annual returns, although there are exceptions. If an organization does not file a required return or files late, the IRS may assess penalties. Also, if an organization does not file as required for three consecutive years, it automatically loses its tax-exempt status. This link will take you to the IRS website page that has all the links to the current information.
Annual Filing and Forms
Your club will need licensing for the music. The link here explains the three main licensing companies. For more information regarding licensing for your club or special events please contact the president of the ABA.
Music Licensing
How to Run a Board Meeting - Roberts Rules of Order
Do you need a copy of Roberts Rules of Order? There are many sources for this document, and many formats exist. Clicking the logo at the left of this paragraph will take you to the official website for Roberts Rules of Order.
Every club needs an organizational structure and corporate bylaws. There are many bylaws available online to draw from but each state has different requirements for a proper Bylaw form. There are good online sources for proper Bylaw creation such as Legal Zoom or Rocket Law. While they charge a fee Rocket Law has a free service to help craft your documents. By answering a few questions you create your personal document. You can choose to save it or just print the text and use it.
While we are not endorsing Rocket Lawyer specifically, and there are certainly many other such services in addition to employing legal counsel in your area, they do have quite a few legal documents designed online and in the proper format.