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Do we need to Incorporate?
There is no requirement for Chapters or Sigs to incorporate, but it is encouraged for Chapters.  Once a group has revenue from dues or other sources (e.g., workshops, fundraisers, donations) then the matter of paying taxes becomes relevant.  

What options for incorporation do we have in the USA?
Most groups that incorporate become 501(c)6 non-profit corporations.  501(c)6’s are business leagues or associations that are organized and operated primarily to promote the common business interests of its members.  501(c)6 groups do not have to pay taxes, but they do need to report annually to the IRS.  To learn how to apply, go to

Outside of the USA?
Please consult a local tax/business professional to learn your national rules.

Alternative to Incorporating

Should your group chose to collect revenue and not to incorporate, then you can:

  • appoint a Board member or other trusted member to create a PayPal account for your group
  • collect money through the account and “hold” the money for the chapter
  • pay taxes on it using existing monies (the individual would do this as part of their annual tax return, and pay the appropriate taxes out of the Chapter funds)
  • note that any "profit" at the end of the year would actually work like "income" for that person, as far as their tax return is concerned