DIY - Guide for Obtaining State Income/Franchise Tax Exemption

Income tax is a tax on an organization's income. Franchise tax is a fee for the privilege of doing business in a particular state. States generally require one or the other, but not both. Most states allow 501(c)(3) organizations to obtain an exemption from paying these taxes.

RENOSI completes* these filings for its clients. However, we understand that some people like to do things themselves, so we have created this DIY guide. If you would like our assistance with this or anything else, we are here to help.

*Additional filing fees charged by your state are not included in the cost of your plan and must be invoiced separately.


RENOSI is the leader in helping national organizations set up and manage affiliate chapters. Setting up local, regional and state affiliate chapters is an excellent way to grow your national organization. Managing hundreds and even thousands of chapters, however, is time-consuming and difficult.

Since its inception, RENOSI has provided a simple and stress-free solution to help obtain and maintain tax-exempt status for over 4,000 nonprofits. With the interactive myRENOSI dashboard, our partners can organize their state and federal registrations, allowing our team of experts to help ensure your tax-exempt status is not revoked.