An employment-related common bond
Membership is restricted to those sharing a genuine employment connection. Defining that class correctly in the governing documents is the foundation of the whole structure.
Tax-Exempt Formation
501(c)(9) Voluntary Employees’ Beneficiary Associations
A 501(c)(9) is a voluntary employees’ beneficiary association — a VEBA. It exists to provide life, sick, accident, or similar benefits to members and their dependants, funded by the employer, the members, or both.
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Avvo Clients’ Choice Award, 2026
“We were so grateful for Breanna’s work for our small non-profit. Kind, clear, and reliable!”
Amy · via Avvo
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Form your 501(c)(9)
Tell us about your association. We usually reply the same business day.
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Book a ConsultationYou’re not hiring a filing service.You’re working with an attorney.
Legacy Path Law focuses on nonprofit, business, and intellectual property law. Your matter is handled by an attorney — not simply an online filing platform.
The attorneys who will handle your matter
Founding partners Breanna McCarthy and Channing Thomas work in nonprofit and tax-exempt law every day. Breanna is a member of The Florida Bar; Channing is a member of the Virginia State Bar and clerked at the North Carolina Court of Appeals and the Supreme Court of Virginia.
Your matter is handled by an admitted attorney, not an intake team and not a filing service.
501(c)(9) Formation
$2,999Complete formation package • state filing fees included
- Confirmation that 501(c)(9) is the right section for you
- Name availability search
- Articles of Incorporation prepared and filed
- Purpose language drafted for 501(c)(9)
- Federal EIN (FEIN) registration
- IRS Form 1024 preparation and submission
- Bylaws and governance document templates
- Conflict of interest policy template
- Responses to IRS follow-up questions
- State filing fees included
Flat fee • state filing fees included • no surprise add-ons
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What a 501(c)(9) is for
Section 501(c)(9) covers associations providing for the payment of life, sick, accident, or other benefits to members and their dependants or designated beneficiaries. Membership must be voluntary, and no part of the earnings may benefit any private shareholder beyond those benefit payments.
VEBAs are most often used by employers, groups of employers, or unions to fund employee benefits through a dedicated, tax-exempt vehicle rather than paying claims directly from operating funds.
The trade-off to understand first
Membership must be limited to people sharing an employment-related common bond — the same employer, the same union, or the same industry and locality. And benefits cannot discriminate in favor of highly compensated individuals. These two constraints shape the entire design.
Choosing How to Form Your Nonprofit
Forming a nonprofit is two separate jobs: creating the entity under state law, and obtaining federal tax exemption from the IRS. Cheaper routes usually cover the first and leave you the second, which is the part where mistakes are expensive to undo.
| Feature | Do It Yourself | Online Filing Service | Full-Service Law Firm |
|---|---|---|---|
| Cost | Lowest upfront cost | Moderate, with add-on fees | Flat fee, agreed in writing |
| State incorporation | You prepare and file | Filed from a template | Attorney-prepared and filed |
| IRS-required language | Commonly missed | Generic boilerplate | Drafted for your purpose |
| Form 1023 or 1023-EZ | You decide and file | Often an upsell | Eligibility assessed, then filed |
| Bylaws & conflict policy | Downloaded templates | Templates, if included | Drafted for your organization |
| Board composition | No guidance | No guidance | Reviewed against IRS expectations |
| IRS follow-up questions | Handled on your own | Additional fees to assist | Responses included |
| Best for | Experienced founders | Simple, low-budget filings | Getting it right the first time |
Amending organizing documents after filing costs more than drafting them correctly, and a denied application means paying the IRS user fee again.
How 501(c)(9) Formation Works
A VEBA has to satisfy eligibility, control, and non-discrimination requirements. Those are structural, so they are decided in the drafting.
Eligibility and Bond
We establish that the membership shares an employment-related common bond and that participation is genuinely voluntary.
Organizing Documents
Trust or articles and bylaws setting out membership, the benefits provided, and control by members or independent trustees.
Plan and Controls
The benefit plan documented, with the governance and financial controls appropriate to holding funds for others.
Form 1024 Application
Prepared and submitted with the narrative, plan documents, and projections, and we answer IRS follow-up questions.
Who this is for
A 501(c)(9) — a voluntary employees’ beneficiary association — holds and pays out employee benefits. Membership eligibility and employee control are what the IRS examines most closely.
This is the right fit
An employee benefit fund, controlled by its members.
- An employer, union, or group of employees establishing a benefit association
- Membership is voluntary and drawn from employees with an employment-related bond
- Benefits are life, sickness, accident, or other permissible welfare benefits
- The association is controlled by its membership or independent trustees
- No part of the earnings benefits any individual beyond the benefit plan
You likely need a different page
This is not an employment-based benefit fund.
- A fraternal organization providing member benefits — see 501(c)(8)
- A trade or professional association — see 501(c)(6)
- Charitable purposes — see 501(c)(3) formation
- A social or recreational club — see 501(c)(7)
- You are forming a business entity — see LLC formation
A VEBA sits alongside employment and benefits law as well as tax law. We will tell you where those other questions start, and when you need a benefits specialist beside us.
What to Get Right at Formation
The issues that most often cause trouble later, addressed at the start.
Non-discrimination requirements
Benefits generally cannot favor officers, shareholders, or highly compensated employees. Plan design and eligibility rules need to be tested against these requirements before adoption.
Deduction timing is its own question
How and when employer contributions are deductible is governed by separate rules with real limits. This is a question to work through with your tax advisor alongside formation.
Not sure this is your section?
These categories overlap more than they look like they do, and the wrong choice is expensive to unwind. Tell us what your organization actually does and we will tell you which section fits — before you pay for anything. Ask us first.
501(c)(9) Questions
Who can be a member of a VEBA?
Membership is limited to individuals sharing an employment-related common bond, such as the same employer, the same union, or the same industry within a locality.
Are employer contributions deductible?
Contributions may be deductible, but separate rules govern the timing and the deductible amount. This should be reviewed with your tax advisor as part of the plan design.
Can a VEBA favor executives?
Generally no. Benefits that discriminate in favor of highly compensated individuals put the exemption at risk, so eligibility and benefit levels need careful drafting.
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What Clients Say
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"I highly recommend Legacy Path Law Firm. From the moment they took over our legal matters, their professionalism, responsiveness, and attention to detail were exceptional.
We came to Legacy Path after experiencing significant difficulties with another firm, including important work that had not been properly completed. Legacy Path stepped in, carefully reviewed what had been done, identified the outstanding issues, and took the necessary action to bring the matters to completion.
What impressed me most was their willingness to take ownership of the process. Rather than making excuses or focusing on the problems created by the previous firm, they focused on solutions, communication, and getting the work done correctly.
Their team has been professional, knowledgeable, responsive, and dependable throughout the entire process. After the experience we previously encountered, it was refreshing to work with a law firm that understands the importance of accountability and client service.
I am extremely pleased with the service we received and sincerely appreciate Legacy Path Law Firm for stepping in and successfully completing work that had previously been left unresolved.
I would confidently recommend Legacy Path Law Firm to anyone looking for a legal team that follows through on its commitments and genuinely takes care of its clients."
We came to Legacy Path after experiencing significant difficulties with another firm, including important work that had not been properly completed. Legacy Path stepped in, carefully reviewed what had been done, identified the outstanding issues, and took the necessary action to bring the matters to completion.
What impressed me most was their willingness to take ownership of the process. Rather than making excuses or focusing on the problems created by the previous firm, they focused on solutions, communication, and getting the work done correctly.
Their team has been professional, knowledgeable, responsive, and dependable throughout the entire process. After the experience we previously encountered, it was refreshing to work with a law firm that understands the importance of accountability and client service.
I am extremely pleased with the service we received and sincerely appreciate Legacy Path Law Firm for stepping in and successfully completing work that had previously been left unresolved.
I would confidently recommend Legacy Path Law Firm to anyone looking for a legal team that follows through on its commitments and genuinely takes care of its clients."
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An Outstanding Legal Partner
"Breanna was instrumental in helping our nonprofit build a strong legal foundation from the very beginning. She guided us through changing our organization's name, establishing our foreign entity registrations, and navigating the legal requirements that come with a growing national nonprofit.
She took the time to explain complex legal matters in plain language, making sure our board understood every step before moving forward. Her work gave us confidence that our organization was structured correctly and positioned for future growth.
I would highly recommend Breanna to any nonprofit or business looking for an attorney who is professional, thorough, and a trusted advisor. We truly appreciate everything she did to help Latino Professionals in Aerospace get off the ground legally and set us up for long term success."
She took the time to explain complex legal matters in plain language, making sure our board understood every step before moving forward. Her work gave us confidence that our organization was structured correctly and positioned for future growth.
I would highly recommend Breanna to any nonprofit or business looking for an attorney who is professional, thorough, and a trusted advisor. We truly appreciate everything she did to help Latino Professionals in Aerospace get off the ground legally and set us up for long term success."
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A Trusted Legal Partner for Nearly a Decade
"I've had the pleasure of working with Breanna for nearly a decade, and I can't recommend her highly enough. She was instrumental in helping me properly structure my business and guiding me through securing my trademark, and she's been an invaluable resource ever since.
What I appreciate most is that she's not only incredibly knowledgeable, but also someone I genuinely trust. Anytime a legal question comes up, she's my first call. She takes the time to explain everything clearly, provides practical advice, and always has my best interests in mind.
Having someone in your corner who is responsive, professional, and truly invested in your success is invaluable. Breanna has been exactly that for me, and I wouldn't hesitate to recommend her to anyone looking for an outstanding attorney."
What I appreciate most is that she's not only incredibly knowledgeable, but also someone I genuinely trust. Anytime a legal question comes up, she's my first call. She takes the time to explain everything clearly, provides practical advice, and always has my best interests in mind.
Having someone in your corner who is responsive, professional, and truly invested in your success is invaluable. Breanna has been exactly that for me, and I wouldn't hesitate to recommend her to anyone looking for an outstanding attorney."
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Exceptional Legal Counsel
"I worked with Breanna for two years supporting my nonprofit and can confidently attest that she is one of the best lawyers in the industry. She is exceptionally thorough, highly responsive, and brings an outstanding level of attention to detail to every matter.
Breanna is also thoughtful, strategic, and consistently focused on delivering the highest quality work. I would recommend her without hesitation to any organization seeking exceptional legal counsel."
Breanna is also thoughtful, strategic, and consistently focused on delivering the highest quality work. I would recommend her without hesitation to any organization seeking exceptional legal counsel."
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Trusted Resource
"We thoroughly enjoyed working with Breanna. She was very detail oriented, collaborative, and had deep subject matter expertise in helping our state associations get their nonprofit paperwork in order and set up for success.
Breanna made difficult administrative tasks seem easy, and all of this with a smile. She was a trusted resource for our work, and I'm happy to highly recommend her to others."
Breanna made difficult administrative tasks seem easy, and all of this with a smile. She was a trusted resource for our work, and I'm happy to highly recommend her to others."
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Highly Recommend
"We were so grateful for Breanna's work for our small non-profit. Kind, clear, and reliable! Highly recommend!"
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Wonderful
"Professional, timely and goes to a great deal of effort to ensure you understand the whole process."
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Knowledgeable
"Attorney McCarthy is very knowledgeable and supportive during every steps of the process."
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The testimonials on this page reflect the experience of those individual clients. Every matter is different, and a prospective client may not obtain the same or similar results.
Let’s get your organization formed correctly.
Flat fee, state filing fees included, and a clear answer on whether 501(c)(9) is the right section before any work begins.
Already decided? Pay and get started