Create a Nonprofit Organization

Starting a nonprofit corporation is the first step to making a difference in your community for many worthwhile endeavors. You can apply for 501(c)(3) tax exempt status with the IRS using your nonprofit corporation as the applicant.

Non-Profit Corporations: A nonprofit corporation is a special type of corporation that has been organized to meet specific charitable and potentially tax-exempt purposes. Some examples of nonprofit corporations include: charitable businesses, educational organizations, religious groups, or scientific institutions.

To qualify for nonprofit tax-exempt status, your corporation must be formed to benefit: (1) the public, (2) a specific group of individuals, or (3) the membership of the nonprofit.

Benefits of Incorporating a Nonprofit: There are many benefits of incorporating a nonprofit. As a corporation, the nonprofit provides its members limited liability; that is, members, directors, trustees, and employees are generally not personally responsible for the nonprofit’s debts or other obligations. State-recognized nonprofit organizations may be exempt from income, sales, and property taxes. Nonprofit organizations may also be approved to receive private and public grants and low-cost postage rates. There are other tax advantages to nonprofit organizations that you may wish to discuss with your accountant.

How to Form a Nonprofit: The formation of a nonprofit corporation is in many ways similar to formation of a for-profit corporation; but there are some critical differences. For example, in addition to Bylaws, your nonprofit corporation will need to prepare policies and procedures for the treatment of assets upon dissolution and a concise summary of its purposes. Like a for-profit corporation, the nonprofit corporation must be formed with the state in which you wish to incorporate. This is done by filing Articles of Incorporation with the secretary of state, or the state’s equivalent department.

If you’d like your nonprofit organization to enjoy tax-exempt treatment, and to be able to offer tax deductible opportunities to donors, you’ll likely need to file separate applications with the IRS and the state to receive tax exempt status.

Most nonprofit organizations will file Form 1023 [link to form 1023] for 501(c)(3), for charitable nonprofit corporations, because they are the most common. Another common application is the 501(c)(7) form, which applies to social and recreational clubs.

Visit our Education Center for more information on Nonprofits.

Lawyer Prepared Packages:

1. Nonprofit Corporation Premium Package (Most Popular): This package includes:
   • Documents reviewed by a licensed attorney;
   • Preparation and filing of the Articles of Incorporation and other necessary documents in the state;
   • Unlimited name availability searches;
   • Formation documents delivered electronically;
   • Next business day processing (if online EIN is available);
   • 6 months registered agent service*;
   • An EIN number;
   • Personalized Bylaws;
   • Attorney Access (1 month free)**;
   • Conflict of Interest Policy;
   • Distribution of Assets upon Dissolution Policy;
   • Statement of Powers and Purposes;
   • Banking resolutions; and
   • Corporate meeting minutes.

2. Nonprofit Corporation Standard Package: This package includes:
   • Documents reviewed by a licensed attorney;
   • Preparation and filing of the Articles of Incorporation and other necessary documents in the state;
   • Unlimited name availability searches;
   • Formation documents delivered electronically;
   • Next business day processing (if online EIN is available);
   • 6 months registered agent service*;
   • An EIN number; and
   • Prepared and Filed tax exempt applications with IRS and state.

Get a Package and Save Money

* Monthly Fee of $12.50 after the first six months

** Monthly Fee of $29.99 after the first month