Legal

Nonprofit Structure

USBME operates as a nonprofit organization, targeting 501(c)(3) status with the IRS. Forming and maintaining that status generally involves:

Filing Articles of Incorporation with the state, including IRS-required language about charitable purpose and asset distribution on dissolution
Obtaining an Employer Identification Number (EIN) from the IRS
Adopting bylaws and holding an organizing board meeting
Filing IRS Form 1023 (or the shorter Form 1023-EZ for smaller organizations) within 27 months of incorporating, to apply for federal tax-exempt recognition
Registering for applicable state tax exemptions once federal status is granted
Ongoing compliance: annual Form 990 filings, state charitable-registration renewals, and recordkeeping

Form 1023-EZ currently carries a $275 filing fee and is available to smaller organizations (generally under $50,000 in projected annual gross receipts); the full Form 1023 costs $600 and is a much longer filing. IRS review can take anywhere from a few months to about a year.

Tariffs and Trade Considerations

Tariff policy is one of the main forces currently driving reshoring decisions, and it changes frequently. As of recent reporting, U.S. tariffs on many Chinese imports have been running in the range of roughly 30–50% depending on product category, with corresponding retaliatory tariffs from China on U.S. exports. Because these rates shift with trade negotiations, USBME recommends checking current tariff schedules through the U.S. Trade Representative’s office and U.S. Customs and Border Protection before making sourcing or pricing decisions, rather than relying on any fixed number.

MOU and Contract Guidance

The sample MOU structure in the How section is a general starting point, not legal advice. Before signing any memorandum of understanding, supply agreement, or equipment-purchase or licensing contract, especially one involving an overseas counterparty. Consult an attorney experienced in trade, contracts, and export/import compliance.