A nonprofit corporation is a legal entity that is created to perform certain charitable, educational or religious activities. Nonprofits can be created for many different purposes and can have various structures. If you’re interested in starting your own nonprofit, it’s important to understand the basics of how nonprofits are structured and what they do before applying for IRS approval.
This blog post will teach you about the steps required to start a nonprofit corporation with an overview of what needs to happen before obtaining tax-exempt status from the Internal Revenue Service (IRS).
Establish A Nonprofit Corporation
Part of starting a nonprofit is establishing itself as an official corporation. This means filing articles for incorporation and applying for both federal tax ID (FEIN) numbers, which it can use to accept donations in the future. It also includes preparing bylaws, rules that govern how things are run at this new organization.
Obtain IRS 501(c)(3) Status
In order to obtain 501(c)(3) status, a nonprofit corporation must apply for tax exemption by filing an IRS Form 1023. This process can be overwhelming and difficult but forming the nonprofit itself is straightforward once all steps are understood correctly.
State Compliance Issues
In order to maximize your nonprofit’s tax exemptions, you’ll have to take care of three important tasks:
- Obtaining 501(c)(3) status,
- Registering for charitable solicitation licenses in all states where solicitations are made
- Applying for state corporate income taxation exemption.
How Can A2zFilings Help?
We know that the process of getting approved for a nonprofit can be difficult. That’s why A2ZFilings is here to help you every step of the way with our professional team members who are experts at navigating this complex paperwork and filing it correctly so your nonprofit can get off on solid ground from its start.