If you are going to be a tax exempt entity, you need to fall within one of the IRS tax exempt guidelines (e.g. 501(c)(3)). You cannot be a tax exempt LLC. Most states have a non-profit corporation. Please also don’t be confused, a tax exempt entity is exempt from federal and possibly state income and sales tax. Such an exemption does not apply to property taxes. However, certain states have property tax exemptions (e.g. you don’t pay property taxes if the property is used for agricultural purposes).
Can an LLC be set up as a nonprofit organization? If so, can I hold real estate within the LLC, and also have an exempt status? Would I have to pay property taxes for real estate held by my LLC if it was nonprofit?