What steps need to be taken to form a nonprofit?
A. The first step is to file nonprofit articles of incorporation with the proper state agency. It is important that the articles contain the required clauses to ensure your nonprofit will qualify for tax-exempt status. TCI prepares and files nonprofit articles of incorporation in every state. After the nonprofit articles of incorporation are filed, tax-exempt status must be applied for at the federal level and sometimes at the state level. To apply at the federal level, a timely filing of Form 1023 must be made with the Internal Revenue Service (IRS). To determine what form needs to be filed at the state level to obtain tax-exempt status, contact the state department responsible for taxation. Additionally, the nonprofit must comply with corporate formalities and hold annual meetings of directors, members and officers. Bylaws must also be adopted. Documents that help you comply with these corporate formalities are contained in your Corporate Kit.
