HCFN TITLE HOLDING CORPORATION

HCFN Title Holding Corporation is a U.S. nonprofit organization, registered with the Internal Revenue Service under the Entity Identification Number (EIN) 821735390. It operates as a 501(c)(2) title-holding corporation, a type of tax-exempt entity established for the purpose of holding title to property and managing financial assets.

Purpose and Function

As a 501(c)(2) organization, HCFN Title Holding Corporation is organized to hold title to property and collect income from it, which is then turned over to an exempt organization, typically a 501(c)(3) charitable organization. The primary goal of such entities is to facilitate the management of property and financial operations, often providing liability protection and operational efficiency for the exempt parent organization.

Operational Structure

Title-holding corporations like HCFN are generally involved in activities such as renting property and managing financial assets. They are designed to collect income from these activities and distribute it to the parent organization, ensuring that the income is used to support charitable or exempt purposes.

Legal and Tax Implications

HCFN Title Holding Corporation must comply with IRS regulations and reporting requirements, including the filing of annual tax returns to report its income, expenses, and activities. The organization is exempt from taxation on its income to the extent that it is used to support exempt purposes. However, any unrelated business income generated may be subject to tax under the Unrelated Business Income Tax (UBIT) rules.

Role in the Nonprofit Sector

By acting as an intermediary for property management and financial transactions, HCFN Title Holding Corporation plays a crucial role in supporting the operations of its parent or affiliated nonprofit organizations. This structure helps ensure efficiency in managing assets and protecting the parent organization from potential liabilities associated with property ownership.

[1] https://simple.wikipedia.org/wiki/Holding_company [2] https://en.wikipedia.org/wiki/Holding_company [3] https://bushoreinc.com/501c2/ [4] https://www.irs.gov/pub/irs-pdf/p6055.pdf [5] https://en.wikipedia.org/wiki/List_of_holding_companies