Starting a 501(c)3 nonprofit corporation

On Behalf of | Aug 17, 2022 | business law | 0 comments

Running a nonprofit in California can be a very rewarding experience. It takes a lot of time and dedication. However, those interested should know a bit about how a nonprofit works and how to create one correctly.

There are several steps to creating your nonprofit 501(c)3 Corporation in California.

Formation meeting

First, you must meet with your initial board of directors and decide which titles and roles they will assume. You have to record the minutes of this meeting and detail in writing the organization’s purpose.

Application for a Federal Employer Identification Number

You will also need to fill out Form SS-4. This information is permanently associated with your corporation and the IRS. You need to do this regardless of your profit status.

Incorporation in California

After you receive your identification number, you will be required to incorporate in the state you are operating in. You will also need to file a Statement of Information within 90 days of filing your incorporation paperwork.

File your bylaws

To obtain 501(c)3 nonprofit status, you must file your bylaws with the IRS. A legal representative who knows the state and federal laws governing tax-exempt corporations should help with this. Even though you do not have to file them with California, you still have to have them.

File for state and federal tax-exempt status

After forming your corporation, you must apply for your tax-exempt status. File with the IRS first, and then file your federal Letter of Determination with the State of California.

You must complete all these steps to obtain your 501(c)3 status and be a tax-exempt nonprofit. Be sure to do your research when filing in California. The laws differ from state to state. Seeking help from an attorney is strongly advised.