How to form a nonprofit corporation

Part 1: How nonprofit corporations work

1. Is nonprofit incorporation right for you?

Is your group a nonprofit that can use this book?

Benefits of the nonprofit corporation

The disadvantages of going nonprofit

How nonprofits raise, spend, an and make money

Your path to nonprofit status

Where should you incorporate?

2. Legal rights and duties of incorporators, directors, officers, employees, and members

How many people are needed to form a nonprofit corporation?

Incorporators and their role as promoters

Directors

Officers

Employees

Membership nonprofits

3. Requirements for section 501(c)(3) tax exemption

Section 501(c)(3) organizational test

Valid purposes under section 501(c)(3)

Other requirements for 501(c)(3) groups

Information for specific questions about your group's activities

4. Public charities and private foundations

The importance of public charity status

How to qualify for public charity status

Private foundations

5. Other tax benefits and reporting requirements

Federal and state tax deductions for contributions

Federal estate and gift tax exemptions

Federal unrelated business income tax

State corporate income tax exemptions

Other state taxes

State solicitation regulations

State nonprofit corporate report requirements

Part 2: Incorporating your nonprofit

6. Choose a name and file your articles of incorporation

View materials from your secretary of state

Choose a corporate name

Check name availability

What to do when there's a name conflict

Reserve your corporate name

Perform a name search

Protect your name

Prepare your articles of incorporation

File your articles of incorporation

7. Prepare your bylaws

Choose a membership or nonmembership structure

Purpose and scope of our bylaws

Prepare your bylaws

Prepare membership provisions

8. Apply for your federal 501(c)(3) tax exemption

Getting started

Do you need to file form 1023?

Prepare your tax exemption application

Filling out the schedules

Assemble and mail your application to the IRS

What to expect from the IRS

The federal determination letter

9. Final steps in organizing your nonprofit corporation

Obtain state corporate income tax exemption

Set up a corporate records book

Prepare the minutes of your first board of directors meeting

Place minutes and attachments in corporate records book

Issue membership certificates

File fictitious or assumed business name statement

Apply for a federal nonprofit mailing permit

Apply for property tax exemptions

File an initial corporate report form

Register with the attorney general

Comply with political reporting requirements

Prepare assignments of leases and deeds

File final papers for prior organization

Notify others of your incorporation

10. After your corporation is organized

Piercing the corporate veil : If you want to be treated like a corporation, it's best to act like one

Federal corporate tax returns

State corporate tax returns and reports

Federal and state corporate employment taxes

Employee income tax returns

Sales tax forms and exemption from sales tax

Licenses and permits

Workers' compensation

Private insurance coverage

Dissolving a nonprofit corporation

11. Lawyers and accountants

Lawyers

Legal research

Accountants and tax advice

Appendixes. A. Using the downloadable forms and other online material

B. How to locate incorporation resources online

C. Information and forms.

Part 1: How nonprofit corporations work

1. Is nonprofit incorporation right for you?

Is your group a nonprofit that can use this book?

Benefits of the nonprofit corporation

The disadvantages of going nonprofit

How nonprofits raise, spend, an and make money

Your path to nonprofit status

Where should you incorporate?

2. Legal rights and duties of incorporators, directors, officers, employees, and members

How many people are needed to form a nonprofit corporation?

Incorporators and their role as promoters

Directors

Officers

Employees

Membership nonprofits

3. Requirements for section 501(c)(3) tax exemption

Section 501(c)(3) organizational test

Valid purposes under section 501(c)(3)

Other requirements for 501(c)(3) groups

Information for specific questions about your group's activities

4. Public charities and private foundations

The importance of public charity status

How to qualify for public charity status

Private foundations

5. Other tax benefits and reporting requirements

Federal and state tax deductions for contributions

Federal estate and gift tax exemptions

Federal unrelated business income tax

State corporate income tax exemptions

Other state taxes

State solicitation regulations

State nonprofit corporate report requirements

Part 2: Incorporating your nonprofit

6. Choose a name and file your articles of incorporation

View materials from your secretary of state

Choose a corporate name

Check name availability

What to do when there's a name conflict

Reserve your corporate name

Perform a name search

Protect your name

Prepare your articles of incorporation

File your articles of incorporation

7. Prepare your bylaws

Choose a membership or nonmembership structure

Purpose and scope of our bylaws

Prepare your bylaws

Prepare membership provisions

8. Apply for your federal 501(c)(3) tax exemption

Getting started

Do you need to file form 1023?

Prepare your tax exemption application

Filling out the schedules

Assemble and mail your application to the IRS

What to expect from the IRS

The federal determination letter

9. Final steps in organizing your nonprofit corporation

Obtain state corporate income tax exemption

Set up a corporate records book

Prepare the minutes of your first board of directors meeting

Place minutes and attachments in corporate records book

Issue membership certificates

File fictitious or assumed business name statement

Apply for a federal nonprofit mailing permit

Apply for property tax exemptions

File an initial corporate report form

Register with the attorney general

Comply with political reporting requirements

Prepare assignments of leases and deeds

File final papers for prior organization

Notify others of your incorporation

10. After your corporation is organized

Piercing the corporate veil : If you want to be treated like a corporation, it's best to act like one

Federal corporate tax returns

State corporate tax returns and reports

Federal and state corporate employment taxes

Employee income tax returns

Sales tax forms and exemption from sales tax

Licenses and permits

Workers' compensation

Private insurance coverage

Dissolving a nonprofit corporation

11. Lawyers and accountants

Lawyers

Legal research

Accountants and tax advice

Appendixes. A. Using the downloadable forms and other online material

B. How to locate incorporation resources online

C. Information and forms.

Your legal companion for forming a nonprofit corporation

How nonprofit corporations work. Is nonprofit incorporation right for you? ; Legal rights and duties of incorporators, directors, officers, employees, and members ; Requirements for Section 501(c)(3) tax exemption ; Public charities and private foundations ; Other tax benefits and reporting requirements

Incorporating your nonprofit. Choose a name and file your articles of incorporation ; Prepare your bylaws ; Apply for your Federal 501(c)(3) tax exemption ; Final steps in organizing your nonprofit corporation ; After your corporation is organized ; Lawyers and accountants.

Is nonprofit incorporation right for you?

Legal rights and duties of incorporators, directors, officers, employees, and members

Requirements for section 501(c)(3) tax exemption

Public charities and private foundations

Other tax benefits and reporting requirements

Choose a name and file your articles of incorporation

Prepare your bylaws

Apply for your federal 501(c)(3) tax exemption

Final steps in organizing your nonprofit corporation

After your corporation is organized

Lawyers and accountants.

Is nonprofit incorporation right for you?

Legal rights and duties of incorporators, directors, officers, employees, and members

Requirements for section 501(c)(3) tax exemption

Public charities and private foundations

Other tax benefits and reporting requirements

Choose a name and file your articles of incorporation

Prepare your bylaws

Apply for your federal 501(c)(3) tax exemption

Final steps in organizing your nonprofit

After your corporation is organized

Lawyers and accountants.