BizFilings makes it simple, fast, and affordable to form a Nonprofit Corporation in any state, without legal fees. Select your desired state below to get started:
Where would you like to form your Nonprofit?
A nonprofit corporation is an entity formed for purposes
other than making a profit. Nonprofit corporations are formed
pursuant to different state laws than standard for-profit
corporations; however, the process of forming a nonprofit
is very similar.
To be considered tax-exempt, nonprofits must apply for federal
and state (if applicable) tax-exempt status. Tax-exempt status is
not automatically granted once the nonprofit corporation is
formed. To apply for federal tax-exempt status, Form 1023 must
be filed with the IRS. For state requirements, it is best to contact
the department responsible for taxation in the state of
formation.
Like standard for-profit corporations, nonprofits provide limited
liability protection. The personal assets of the directors or
officers typically cannot be used to satisfy
the debts and liabilities of the nonprofit.
To qualify for federal tax-exempt status under 501(c)(3) of the Internal Revenue Code, the nonprofit must be organized and operate for some religious, educational, charitable, scientific, literary, testing for public safety, fostering of national or international amateur sports, or prevention of cruelty to animals or children purpose permitted under this section of the code.
Advantages of a nonprofit corporation:
Directors are typically not personally responsible for the debts and liabilities of the nonprofit corporation
Nonprofit corporations have the ability to apply for both federal and state tax-exempt status
Certain nonprofit corporations are eligible to receive public and private grants, making the obtainment of operating capital easier
With 501(c)(3) nonprofits, donations made by individuals to the nonprofit corporation are tax-deductible
In order to form a nonprofit corporation,
nonprofit articles of incorporation or a nonprofit certificate
of incorporation must be filed with the appropriate state
agency and the necessary state filing fees paid. The formation
documents must include certain clauses and information, such
as a very detailed business purpose statement, in order for the
entity to qualify for tax-exempt status. Thereafter, form 1023 must
be filed with the IRS.
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Did You Know?
LLCs face fewer state-imposed annual requirements and ongoing formalities than do corporations.
