Forming a non-profit corporation involves several key steps and requirements. Here’s a basic overview:
Define Your Mission
Clearly define the purpose of your organization.
Ensure it aligns with the IRS definition of a charitable, religious, educational, scientific, or literary organization if you plan to seek tax-exempt status.
Choose a Name
Select a unique name that complies with your state’s non-profit naming rules.
Check name availability with your state’s business filing office.
Consider reserving the domain name for online presence.
Incorporate
File Articles of Incorporation with the appropriate state agency (usually the Secretary of State).
Include specific language required for non-profits (e.g., a clause stating no profits will benefit individuals).
Pay a filing fee.
Appoint a Board of Directors
Most states require at least 3 directors.
The board is responsible for overseeing the organization’s activities and ensuring compliance.
Create Bylaws
Bylaws are internal rules governing how your non-profit operates.
They typically include meeting procedures, voting rights, and roles of officers.
Hold an Organizational Meeting
Officially adopt the bylaws.
Appoint officers (President, Secretary, Treasurer, etc.).
Approve actions such as opening a bank account.
Apply for an EIN (Employer Identification Number)
Required for banking, tax filings, and hiring employees.
Can be obtained for free from the IRS online.
Apply for Federal Tax-Exempt Status (501(c)(3))
File IRS Form 1023 (or 1023-EZ for smaller organizations).
Provide detailed information about your mission, finances, and operations.
Upon approval, you are exempt from federal income tax and can receive tax-deductible donations.
Apply for State Tax Exemptions
Many states require a separate application for state income, sales, and property tax exemptions.
Stay Compliant
File annual reports with the state
File Form 990 with the IRS.
Maintain good governance practices and keep proper records.