Tax Law (Questions About Taxes)/Church Preschool


Our church just opened a preschool.  It is in the same building as the church and the preschool does not pay any rent, utilities, etc to the church.  Our church is under the group ruling of the 501c3.  The church elected to get a separate EIN for the preschool to incorporate the preschool and limit liability.  The preschool is run by a board elected by the church.  Do we have to file our own 501c3 or would will fall under the group that the church is under?


Thanks for your question.

Since you have chosen not to use the church tax ID number, you are separate from them and must establish your own 501(c)(3) exemption.  I would suggest that you consult an attorney about limiting your liability through a separate tax ID number.  You may find that there is more that is involved in terms of limiting liability.

Hope this helps.

John Stancil, CPA

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John Stancil, CPA


I can answer questions on personal income taxes, partnerships, and some corporate income taxes. I can deal with some state tax questions. Limited gift and estate tax questions. I am also familiar with ministerial and church tax reporting issues. I am Professor Emeritus at Florida Southern College. Sales taxes and property taxes are state and local issues so I am not likely be be able to give you an in depth answer on those types of taxes. I have maintained a CPA practice, specializing in tax, for over 35 years. I am a member of the National Association of Tax Professionals, The Florida Insititute of CPA's, The NCPE Fellowship. In addition I am a Certified Mentor for SCORE. Visit my website at I also offer seminars and consultations to churches and clergy on their tax issues at Also visit my blog, I am listed on Tax Connections at Prepare and file your own taxes at


I hold a doctorate in Accounting, and am a CPA. My certifications of CIA, CFM, and CMA are inactive. I passed all certification examinations on the first attempt, and received honorable mention for my scores on the CIA exam. I have operated a CPA firm for over 37 years and have taught accounting and tax at the college level for over 35 years.

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