State laws require all nonprofit corporations to maintain a registered address with the Secretary of State in each state where they do business. The person or company located at that address, known as the Registered Agent, must remain available during all business hours. A Registered Agent receives and forwards important legal documents and state correspondence on behalf of the business.
All corporations are generally required to file annual reports and pay franchise fees to the state in which they're incorporated; however, nonprofits are often exempt from paying franchise fees.
In addition, nonprofits are generally required to annually renew their registration in any state in which they are registered. Nonprofits are also subject to various laws and regulations regarding their tax-exempt status. Every exempt charitable organization is classified as either a public charity or a private foundation.
They are distinguishable primarily by the level of public involvement in their activities. Generally, organizations that are classified as public charities have an active program of fundraising and receive contributions from many sources including the general public, governmental agencies, corporations, private foundations or other public charities.
Examples include: churches, hospitals, schools, colleges and universities. By contrast, private foundations typically have a single major source of funding usually gifts from one family or corporation rather than funding from many sources. Many offer grants to other charitable organizations and to individuals, rather than operate charitable programs.
Are there limitations on the activities in which my tax-exempt organization can engage? Yes, depending upon the nature of its exemption, your tax-exempt corporation may jeopardize its tax-exempt status if it engages in certain activities. For example, section c 3 charitable organizations may not intervene in political campaigns or conduct substantial lobbying activities. Consult an attorney for more specific information about your organization.
Some states only require one director, but the majority of states require a minimum of three directors. Celebrate Small Business Month! New Order?
Existing Order? Toggle navigation. LLC More Learning Center Start-up Tasks Corporation vs. About Us About incorporate. Get liability protection and tax-exempt status benefits for your qualifying nonprofit organization. Overview FAQs Ready to create your company? Every day, individuals like you are inspired to start a nonprofit to help serve your community. Starting and sustaining a nonprofit are not easy tasks, but we applaud your commitment to helping others.
The National Council of Nonprofits does not provide one-on-one assistance to start or operate a nonprofit. Instead, we freely share lots of information here on our website and encourage you to consult with local expertise either an attorney, accountant, or someone very familiar with tax-exempt law and how charitable organizations operate in your state to ensure that the new nonprofit you form complies with state and local requirements, as well as federal laws.
We encourage you to read the information we share in all five steps below before making a decision to start a nonprofit. IRS Publication Actively scan device characteristics for identification.
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Please reference the Terms of Use and the Supplemental Terms for specific information related to your state. Grow Your Legal Practice. Meet the Editors. Form a Nonprofit in Eight Steps. Follow these steps to form your own nonprofit c 3 corporation. Choose a name. File articles of incorporation.
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