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S-Corp Election Question — nonprofit 501c3 application denied

Started by newbie_creator_2022 · Mar 5, 2024 · 2,326 views · 12 replies
For informational purposes only. This is not legal advice. Laws vary by jurisdiction. Consult a qualified attorney for advice specific to your situation.
NC
newbie_creator_2022 OP

Has anyone dealt with something like this? I'm not sure what my options are.

nonprofit 501c3 application denied. I've been dealing with this for about 16 months now and the situation isn't improving.

I have already done some research online but got conflicting advice.

What are the risks if I pursue this? What's the likely timeline?

CF
confused_freelancer_2026

Have you tried reaching out to your state's legal aid society? They sometimes have free resources or mediation services.

NS
newbie_student_NC

I work in this industry and unfortunately this is very common. The good news is that when people actually push back with legal representation, companies usually settle.

CD
confused_dev_WA

This happened to me too. Have you tried filing a complaint with the relevant agency? In my case they investigated and it got resolved without needing a lawyer.

FH
frustrated_homeowner_OH

NAL, but from what I've read, you should check your state's specific laws. That said, definitely get a lawyer to look at the specifics.

SB
SmallBizOwner_NYC

Not a lawyer, but I have direct experience with this.

The biggest mistake people make in this situation is having everything documented. I'd recommend keeping a detailed timeline instead.

TB
throwaway_buyer_legal

This happened to me too. Have you tried filing a complaint with the relevant agency? In my case they investigated and it got resolved without needing a lawyer.

SM
SeniorDevMike_PDX

I've seen this play out several times in my field.

What worked for me was having everything documented. It took 3-6 months but was worth it.

NH
need_help_contractor_2023

NAL, but from what I've read, you should check your state's specific laws. That said, definitely get a lawyer to look at the specifics.

MA
MusicProducer_ATL

Been there. Here's what I learned.

What worked for me was having everything documented. It took 3-6 months but was worth it.

CB
confused_buyer_NY

I had a similar issue and ended up consulting with an attorney. It was worth the $200-300 for the initial consultation just to understand my rights.

TT
throwaway_trader_MA

Just want to point out — the statute of limitations might be a factor here. In some states it's as short as 1-2 years. Don't sit on this too long.

TL
Mod_TermsLaw Moderator

I practice in this area. Here's my take on the legal issues.

Based on what you've described, you likely have a viable claim under the relevant statute. The standard is whether a reasonable person would find the conduct actionable.

The practical consideration here is cost vs. potential recovery. For disputes under $10K, small claims court is often the best route.

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