Apply for “tax exempt” status if you wish
To become exempt from federal and state corporate income taxes, you must apply for and obtain tax exempt status from the Internal Revenue Service. This is accomplished by filing form 1023. The process may be easy or difficult, depending upon a number of factors related to your goals and how you complete the application. Be aware it is a somewhat time-consuming process and there is a $600 fee to apply using form 1023. There is a simpler form 1023 EZ, suitable in some situations, which only costs $275. .
NLI strongly recommends the engagement of an experienced attorney or other professional resource for this process, although this is not required. You can go through the process on your own. However an experienced professional can help you avoid pitfalls which may derail your application.