What steps need to be taken to form a non-profit corporation?
The first step is to file non-profit articles of incorporation with the proper state agency. It is important that the articles contain the required clauses to make sure your articles will qualify for tax-exempt status. After the nonprofit articles are filed, tax-exempt status must be applied for at both the federal and sate levels. To apply a the federal level, a timely filing of form 1023 must be made. To determine what form needs to be filed at the state level, contact the department that deals with taxation. The corporation must comply with corporate formalities and hold annual meetings of directors and members. Bylaws must be adopted for the corporation.
