Start a Non-Profit

The process of forming a non-profit varies from state to state. Each state has its own laws and regulations for creating and managing non-profit organizations, which can include different requirements for registering with the state, obtaining tax-exempt status, and complying with ongoing reporting and governance requirements.
These variations can impact the time, cost, and complexity of forming a non-profit organization, so it’s important to research and understand the specific requirements in the state where the non-profit will be located.

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FAQs

Learn more about non-profits

A non-profit organization is a type of organization that operates for the benefit of the public, rather than for profit. They rely on donations, grants, and other sources of funding to sustain their operations and achieve their goals. Non-profits can address various issues or provide support to communities. To qualify as a non-profit, organizations need to register with the IRS and meet certain requirements to maintain their tax-exempt status.

The process of forming a non-profit typically involves first forming a corporation with your desired state. That process varies between states but can take days to weeks. 

Once your entity is officially formed, you must request exempt status with the IRS by submitting form 1023. Organizations may submit form 1023-EZ online, which speeds up the process to as little as four weeks. Should an organization choose to complete the hard copy form 1023, the process could take six months or longer. 

The cost to form a non-profit varies by state. Please contact us for a quote.

There are several advantages to forming a non-profit organization, including:

  1. Tax-exempt status: Non-profit organizations are typically exempt from paying federal and state income taxes, as well as sales and property taxes. This can significantly reduce operating costs and free up resources to support the organization's mission.
  2. Ability to receive donations: Non-profit organizations can receive tax-deductible donations from individuals, corporations, and foundations, which can provide a significant source of funding for the organization's activities.
  3. Limited liability: Non-profit organizations can limit the personal liability of their directors, officers, and members, which can protect them from legal and financial repercussions.
  4. Credibility: Non-profit organizations are often viewed as more credible and trustworthy than for-profit businesses, which can help them attract funding, support, and partnerships.
  5. Public benefit: Non-profit organizations are required to operate for the public benefit and fulfill a social or community need, which can provide a sense of purpose and fulfillment for those involved in the organization.

These advantages can make non-profit organizations an attractive option for individuals and groups looking to make a positive impact in their communities or pursue a social mission.