Corporation Sole

Embracing the Spiritual Community Worldwide
A Functional Organization

by Rev. Nancy E. Lloyd, Ph.D.

Corporation Sole (CS) has been around since the Magna Carta, and yet is so new to most of us that it is frequently looked upon with suspicion. Since CS entails changing the whole paradigm in which one lives life, it bears checking out thoroughly.

CS is a church formation. The term "church" is a generic term meaning a place of worship, a place of meaningful thought, a sacred or spiritual place, and also the officials who maintain the church. "Religion" is defined as a personal set of beliefs and practices adhered to with faith and ardor. The fact that your beliefs may or may not follow the traditions of an established formal religion is inconsequential. CS is recognized worldwide and is flexible enough to meet the needs of all spiritual businesses, activities, missions, schools and personal lives.

Now that we have established that a CS is a church (personal/private foundation) and have established that one person and his/her personal beliefs can be a church, why would you want to structure your mission and life as such?

• CS is perpetual. It moves on through successors; there is no probate, no inheritance tax.
• CS allows you to live your mission.
• CS allows you to devote your time, energy, business and income to funding your mission.
• CS allows you to control the assets of the CS as the steward, not the personal owner.
• CS enormously decreases taxes on income created by the CS managed business & on the minister providing the labor either completely or by 50%.
• IRC Title 26 §508 specifies CS is a "mandatory exception" to having to apply for tax exempt status.
• IRC Title 26 §6033 specifies CS is a "mandatory exception," not required to report any activities, financial or otherwise.
• CS is protected by the First Amendment to the Constitution of the United States of America:
• "Congress shall make no law respecting the establishment of religion, or prohibiting the free exercise thereof...."
• CS interfaces with statutory law, yet is not controlled by it.
• CS has the power to contract.
• CS can provide for all your necessities.

There are significant differences between a 501(c)(3) church and a CS. A 501(c)(3) church has applied to the IRS for the privilege of tax exemption and submitted its articles to the IRS for approval, and it must maintain a board of directors, minutes and record keeping. It must report its income and expenditures and is open to auditing by the IRS just for the privilege of being tax exempt and accepting tax-deductible donations. ALL of the privileges "granted" by the IRS to the 501(c)(3) church are inherent to a church without making application and requesting the privilege. IRS Publication 526: a church is a "qualified organization" and able to receive tax-deductible donations at the 50% rate and need NOT apply for this recognition. All CS paperwork, including the articles, is kept confidential. CS needs no board of directors, trustees, or minutes and has no reporting. It cannot be audited. CS is a contract with the Ultimate Creator; 501(c)(3) is a contract with a man-made government.

What to look for in the company providing your CS:

1. What is the vendor's knowledge base?
2. How long have they been providing CS?
3. What state do they file in? There are only a few that really favor the CS.
4. Are the Articles written to protect you?
5. What does the company provide for their fee? The Articles and the filing, an Apostille, a Seal, a free User's Manual and personalized customer support?
6. Is the creation fee reasonable? Fees range from a few hundred dollars to many thousands of dollars.
7. Do they have a mission to educate and empower you?

You will have to go with your "intuition" about whom you are working with and why they are in business. It is extremely important to select a vendor with integrity and continuity, a vendor who offers solutions and meets your needs.

Elevating our lives and activities to encompass a spiritual level elevates freedom to its highest definition.

Nancy E. Lloyd, Ph.D. is a National CS Consultant whose mission is to educate and empower others to practice and integrate their spiritual freedom in all walks of life. For more information, call: 336-668-7202, email: drnlloyd@triad.rr.com, or listen to recorded information at 212-461-8813.