Starting a nonprofit can be an incredibly rewarding journey. However, getting from your initial idea to a fully operational organization involves several important legal and administrative steps.
An important step is deciding how you will structure the entity. A nonprofit can be a nonprofit corporation (sometimes referred to as a nonstock corporation) or, in some states, a nonprofit LLC. This guide focuses on the steps for setting up a nonprofit corporation – the structure most often used if you’re seeking federal tax-exempt status.
To officially create your nonprofit corporation, you’ll need to file Articles of Incorporation with your state. Other steps include defining your nonprofit’s purpose, naming it, recruiting your initial board of directors, designating a registered agent, and more.
Once you’re up and running, you will need to file a separate tax exemption status application (501(c)(3)) with the IRS.
This guide walks through each stage of this process, from planning to ensuring compliance once you’ve incorporated.