The formation documents for a non-profit
corporation are also termed the articles of incorporation, or
certificate of incorporation. The businessman or woman, who
wants to start his or her non-profit corporation in the state,
must be aware of the requirements. If you’re well prepared
regarding the needs of the state and what you have to provide
in order to form a nonprofit organization in a particular state,
you’ll save much time and energy later in the proceedings.
Most of the time, there’s a form that needs to be filled
out, in order to incorporate your non-profit organization. On
the form, simply select the “non-profit” option
on the checkbox to designate the type of corporation. There
are actually some large differences in the fees and type of
information necessary for each state, but there are a few basics
common to most states, outlined below.
The name of the organization.
After you’ve conducted a
preliminary search for the availability of the name you’d
like to attribute to your non-profit business, and discovered
that it’s available, the desired name should be included
in the information you gather for the state. It usually ends
with the suffixes “Corporation” or “Company”
or “Limited” etc. Most of the time, use of abbreviations
is acceptable, and they’re written as “Corp.”
or “Ltd.” etc. The state decides finally whether
the desired name will be allowed for the company and either
grants it or refuses it (based on whether it finds it deceptively
similar to any existing companies).
The purpose of your business.
Information on why you’ve opted for a non-profit corporation
and what its aim and purpose are, should be included in the
articles of incorporation you send to the state. Unlike profit-oriented
corporations, the non-profits need to give a detailed outline
of their purpose and why they’re being brought into existence.
If you want to have a tax-exemption for your non-profit work,
you need to apply to the IRS, which is the final authority in
the decision to grant it to based on the detailed articles of
incorporation you submit. Receiving an accurate classification
of your non-profit business is essential to the IRS. If your
non-profit fits into 501(c) (3) non-profit clause, it means
that your work is related to either public charity or it is
a private foundation aiming at educational, religious, literary
or charitable works. It also includes public safety measures,
development of amateur sports, prevention of cruelty to animals
and children etc. You should be aware that, to get tax-exempt
status, you need to file with the IRS and fill out the form
1023. Other procedures are also mandatory in some states, and
your state department of taxation can guide you in this regard.
The Registered Agent.
Even a non-profit corporation needs to have a registered agent
to deal with the tax and legal documents – and information
about the agent must be included in the articles of incorporation.
He or she must possess a physical address in the state of formation
and also must be present during business hours. He or she is
responsible for the initiation of any lawsuits and for receipt
of taxation documents from the concerned department. His or
her address is a matter of public record.
The Incorporator.
In the formation documents, the name, address and signature
of the incorporator (the one who is preparing and filing the
documents with the state) needs to be included.
The Directors.
On the formation documents, many states require a list of the
names and addresses of the directors of the non-profit corporation.
Though they may not be responsible for the day-to-day activities
of the business, they determine the overall direction of the
company and are responsible for any major decisions. They appoint
the Officers of the non-profit.
The Officers.
Some of the U.S. states insist on listing the information of
the officers in a non-profit corporation. They are involved
in the day-to-day activities of the corporation and they include
the President, the Vice-president, the Treasurer and the Secretary.
The principal address of the
non-profit. Some of the U.S. states
may require the legal address of your non-profit corporation.
Taking time and care when assembling this information makes
it easier for you to approach the state authorities for incorporation.
