Non-Profit Formation

C Corp
Limited Liability Company
Limited Liability Partnership
Non-Profit Organization

A Non-Profit 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.

 

 

Level I - NP formation fee $800
3 hours of consulting included.

Level II - NP formation fee $900
5 hours of consulting included.

Once your Non-Profit corporation is formed, you must comply with corporate formalities. These formalities include holding annual meetings of directors and adopting bylaws The corporate kit contains the necessary items to make complying with these formalities easy.

 

Price includes:

 

  • Quick turnaround. 15 - 20 business days.
     

  • A professional binder enclosed in a matching slip-case
     

  • 20 full-page, numbered, custom-made stock certificates printed with your corporate name
     

  • A custom corporate seal
     

  • Sample bylaws
     

  • Sample minutes of an organizational meeting
     

  • Get your organization's exempt status recognized sooner by having us file IRS Form 1023-EZ (Add $650. Cost includes
    IRS filing fee
    )

     

  • Tax ID (EIN) Obtainment. An $80 Value A representative will call you. SSN required for obtainment.
     

  • FREE Resident Agent Service for 6 months. A $189 Value
     

  • Corporate Forms PDF
     

  • 3 hour FREE consulting is a $450 Value
     

  • 5 hour FREE consulting is a $750 Value

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