You will have to file documents with the IRS to show that you want to become a non-profit business. Visit www.irs.gov for more information or a local accountant. My main question is what would be your main purpose for changing? In addition, do realize you can still be audited and will still need to justify legitimate expenditures?
Tim Berry is the chairman of Eugene, Ore.-Palo Alto Software, which produces business-planning software. He founded Bplans.com and wrote The Plan-As-You-Go Business Plan, published by Entrepreneur Press. Berry is also a co-founder of HavePresence.com, a leader in a local angel-investment group and a judge of international business-plan competitions.