Five Things Most Pastors Forget When Starting a Church

It's thrilling and rewarding to start a church, but many pastors forget important legal aspects that could cause complications later on that cost a lot of money. These mistakes are typically made because the rules are complicated and people want to focus on ministry instead. This book lists five legal areas that many pastors forget about when starting a church and gives you helpful tips to help you start your ministry with confidence, in line with the Tier 1: THE STARTUP PLAN for smaller churches with fewer than 900 members.

Correctly Adding the Church

A lot of pastors think that just getting people together is enough to create a church, but technically, your church needs to be a nonprofit company to protect its leaders and get tax breaks. Incorporation makes a separate legal entity, which protects board members and pastors from being personally liable. It is very important to file Articles of Incorporation with your state. If the church doesn't incorporate, the church and its leaders are at risk.

Writing Clear and Complete Bylaws

Bylaws provide the rules for how your church runs, but people often forget about them or don't take the time to read them. Bylaws that are well-written spell out who is in charge, who can join, how meetings are run, and how to settle disputes. They are the church's constitution and are needed to get tax-exempt status from the IRS. Your church could have trouble with governance and the law if it doesn't have the right bylaws.

Getting Federal Tax-Exempt Status

Pastors often don't realize how important it is to get 501(c)(3) status. This recognition from the IRS means that your church doesn't have to pay federal income tax. It also lets donors deduct their gifts, which is very important for generating money. The application procedure is long and complicated, and mistakes can lead to delays or rejections.

Setting Up Pastoral Pay in the Right Way

Pay and housing allowances are two classic mistakes. To follow IRS standards, pastors must keep accurate records of salary and housing allowances. If the church or pastor doesn't handle things correctly, they could get tax fines. Legal advice helps set up fair pay plans and the right housing allowance allocations.

Putting Risk Management Policies into Place Early

Churches typically don't think about risk management until it's too late. Liability waivers for activities, insurance, and background checks for volunteers all help the church stay out of trouble with the law. Early risk management lowers the chances of lawsuits and makes the church a safer place for everyone.

The STARTUP PLAN helps you avoid these mistakes. It is made for small churches that require cheap, skilled legal help. It gives you legal discounts, monthly legal credits, and email help all the time. You get important legal documents and a network of people who can help you. With the Startup Plan, pastors don't have to worry about legal issues and can focus on their work.

Conclusion

Don't let legal mistakes get in the way of your mission. Starting a church is a holy duty that needs a strong legal base. If you can avoid these five frequent mistakes early on, you'll save time, money, and stress, which will help your ministry grow. The STARTUP PLAN gives you competent legal guidance that is specific to churches with fewer than 900 members at every stage.

Links Inside

• Church Building Services
• Service for Writing Church Bylaws
• Advice on how to pay pastors

Links to Other Sites

• IRS EIN Application
• IRS Form 1023 Information
• ECFA (Evangelical Council for Financial Accountability)

Warning

This blog article is not legal advice; it is simply meant to give you information. Please talk to a lawyer who is licensed to give you advice that is unique to your church.