Business Filing for a Non Profit Corporation

Business filing for a non-profit corporation is very similar to that of a regular corporation. There are a few extra steps in the business incorporation filing process to gain tax exemption from the IRS and your state tax division. Here are the basics:

Choose a business name that complies with your state laws
Appoint your board of directors
File Articles of Incorporation and pay your business filing fee
Apply for federal and tax exemptions
Write corporate bylaws
Hold your first board of directors meeting
Secure all required licenses and permits

Business filing begins with choosing an available business name for your non profit. Typically, the same rules apply to choosing a business name for a non profit. But, always check with your state’s corporation division office for specific rules.

Your corporation name cannot contain any word that suggests your business is associated with the federal government such as, National, Reserve, Federal or United States.
You business name should end with a corporate designator or its abbreviation. For example, corporation or corp., incorporated or inc. or limited or ltd.

In some states, for a fee you can reserve a name for your non profit while you are completing your business filing.

Appointing the board of directors for your non profit is the next step in business filing. Owners often appoint themselves as directors but can choose to appoint others. Directors are responsible for most major policy and financial decisions for the non profit.

The third step in your business filing is your non profit Articles of Incorporation. Although it sounds complex, it does not have to be a difficult task. This can be done by filling out a form and paying a filing fee at your state’s corporate filing office or with the help of an incorporation service. The form requires basic information about the non profit such as, it’s name, main address, directors and registered agent (often a director).

A large benefit of being a non profit is your 501(c)(3) tax exempt status. To apply for tax exempt status you must complete IRS form 1023. To get the full benefit of your tax exempt status you must file your 1023 form within 27 months of the date you file your non profit articles of incorporation.

The next step of business filing for your non profit is drafting bylaws. The bylaws are the rules the non profit will use to govern its day to day operations.

After drafting bylaws, your non profit will need to hold the first board of directors meeting. A typical agenda for this first meeting may include:

Adopting bylaws
Appoint corporate officers
Determining the corporation’s fiscal year

Your non profit organization needs business permits and licenses like a regular corporation. The types of licenses and permits your non profit will need will depend on your business but could include:

A tax registration certificate
A seller’s permit from your state
An employer identification number from the IRS

Business filing for a non profit can be as complex as a business incorporation filing for a regular corporation. Be sure to utilize you web resources such as, on-line incorporation services or your secretary of state’s office.

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