How To Become A Registered Nonprofit

How to start a Nonprofit

Use our free nonprofit formation guide to create your own 501c3 nonprofit in 7 simple steps. To get started, simply select the state in which you wish to form your new business organization.

For more information on nonprofits and how they function, read our What is a Nonprofit Corporation article before y'all starting time.

Or, simply use a professional service:

Incfile (Starting at $0 + Land Fees)

Group of excited coworkers putting their hands in the middle with text above them that says "Do Good."

Starting a nonprofit is easy, just follow these simple steps:

To larn more than well-nigh starting a nonprofit corporation in a specific role of the U.s.a., select your land below:

Alabama
Alaska
Arizona
Arkansas
California
Colorado
Connecticut
Delaware
Florida
Georgia
Hawaii
Idaho
Illinois
Indiana
Iowa
Kansas
Kentucky
Louisiana
Maine
Maryland
Massachusetts
Michigan
Minnesota
Mississippi
Missouri
Montana
Nebraska
Nevada
New Hampshire
New Jersey
New Mexico
New York
North Carolina
Due north Dakota
Ohio
Oklahoma
Oregon
Pennsylvania
Rhode Island
South Carolina
South Dakota
Tennessee
Texas
Utah
Vermont
Virginia
Washington
Washington D.C.
W Virginia
Wisconsin
Wyoming

Step 1: Proper name Your Nonprofit

Choosing a proper name for your organization is the kickoff and nigh of import step in starting your nonprofit corporation. Exist sure to choose a name that complies with your land'due south naming requirements and is hands searchable past potential members and donors.

Is the URL available? Nosotros recommend that you lot check to see if your business organization proper noun is available equally a web domain. Even if yous don't plan to make a business website today, you may want to buy the URL in order to prevent others from acquiring it.

Find a Domain At present

Registered your domain proper noun? Next, we suggest choosing a business phone service to assist your nonprofit build authority and trust. Nextiva is our first selection due to its affordability and top-notch customer support. Try Nextiva today.

Footstep 2: Choose a Registered Agent

Your nonprofit is required to nominate a registered agent from your state for your organisation. Check out our How to Choose a Registered Amanuensis for Your Nonprofit guide for more information near choosing the best registered agent for your small business.

What is a Registered Agent? A registered agent is an private or business organisation entity responsible for receiving important legal documents on behalf of your business. Remember of your registered agent as your business' point of contact with the land.

Who can be a Registered Agent? A registered agent must be a resident of your state or a corporation, such equally a registered agent service, authorized to transact concern in your land. You may elect an private within the company including yourself.

Pace 3: Select Your Directors & Officers

The directors of an organization come together to course a board of directors. This lath of directors is responsible for overseeing the operations of the nonprofit.

The president, secretary, and other members of nonprofit who take individual responsibilities and government are known equally officers.

The organization structure of your nonprofit in MUST include:

At least 3 directors non related to each other

Step 4: Prefer Bylaws & Conflict of Involvement Policy

To be eligible to apply for 501c3 condition, your nonprofit is required to take the following two documents:

Bylaws
Conflict of interest policy

What are Bylaws? Bylaws are the rules outlining the operating procedures of the nonprofit.

What is a Disharmonize of Interest Policy? A Conflict of Involvement Policy is the collection of rules put in place to ensure that any decisions made by the board of directors or the officers, benefits the nonprofit and non individual members.

Annotation: The bylaws and disharmonize of interest policy must be adopted by the nonprofit during its outset organizational coming together where the directors and officers are officially appointed.

Step 5: File the Manufactures of Incorporation

To register your nonprofit, you will need to file the Articles of Incorporation with your state.

To ensure that your nonprofit is eligible to apply for 501c3, in your articles of incorporation you must explicitly state the following:

1. Purpose

In order to qualify for 501(c)(3) status, the organization's purpose must explicitly be limited to 1 or more of the following:

Charitable, Religious, Scientific, Educational, Literary, Fostering national/international amateur sports competition, Preventing cruelty to animals/children, Testing for public safety,

ii. Dissolution

You must explicitly country what the assets of the organization will exist used for, and what will happen to the assets if the organization is dissolved.

To be eligible for 501(c)(3) status, the assets of your organization must just e'er be used for purposes approved under department 501(c)(3).

Section 5 of this sample IRS document provides an example of these provisions required for 501(c)(3) eligibility.

Footstep vi: Become an EIN

What is an EIN? An Employer Identification Number (EIN), or Federal Revenue enhancement Identification Number (FTIN), is used by the federal government to identify a business entity. It is essentially a social security number for the company.

Why do I need an EIN? An EIN is required for the post-obit:

To open a concern bank account for the visitor
For Federal and State tax purposes
To rent employees for the visitor

How do I get an EIN? An EIN is obtained from the IRS (free of accuse) by the business organisation owner afterward forming the company. This can exist done online or by mail. Check out our EIN Lookup guide for more than information.

Step 7: Utilize for 501(c)(3) Status

Before a nonprofit can apply for 501(c)(3) condition it must:

Elect at to the lowest degree three directors not related to each other
File the Articles of Incorporation with the required provisions (Equally covered in Step v)
Adopt the bylaws and conflict of interest policy
Take an EIN number

Once these four conditions have been met, your nonprofit can apply for 501(c)(3) tax-exempt status by filing Class-1023 online.

If your awarding is canonical, the IRS will send you a determination letter stating that your system is exempt from federal taxes under section 501(c)(iii).

FAQ

When should an organization apply for federal tax exemption?

Form 1023 must be filed within 27 months from the cease of the first month your organization was created.

How long will it take for the IRS to process Course 1023/1023-EZ?

Soon after sending your application yous should receive an acknowledgement of receipt of your application.

If your awarding is uncomplicated and complete, IRS will transport your determination letter of the alphabet inside 180 days for Form 1023

If you have not heard from them by that time y'all can call 877-829-5500 to enquire near your application.

Protect Your Business & Personal Assets

Concern Banking

1. Opening a business organisation banking concern account:

Separates your personal assets from your visitor's assets, which is necessary for personal nugget protection.
Makes accounting and tax filing easier.

To open a bank account for your nonprofit corporation you will typically need the following:

The EIN for the nonprofit
A copy of the nonprofit'south bylaws
A re-create of the articles of incorporation

Read our Best Small-scale Business organization Banks review to find the right bank for your nonprofit's needs

ii. Getting a business organization credit card:

Helps y'all separate personal and business expenses.
Builds your company's credit history, which can be useful to heighten capital later on.

Get Insurance

Business insurance helps you lot manage risks and focus on growing your business. The most common types of concern insurance are:

General Liability Insurance: A broad insurance policy that protects your concern from lawsuits. Most small businesses get general liability insurance.
Professional Liability Insurance: A business insurance for professional service providers (consultants, accountants, etc.) that covers against claims of malpractice and other business errors.
Workers' Bounty Insurance: A type of insurance that provides coverage for employees' job-related illnesses, injuries, or deaths.

Your Business Needs Insurance

Find out which policies your business organization needs and how much it will cost past getting a complimentary quote today.

Call: 833-536-1478

Properly Sign Legal Documents

Improperly signing a document as yourself and not equally a representative of the concern tin can leave you open to personal liability. When signing legal documents on behalf of your nonprofit , you could follow this formula to avert problems: