State laws require for a Nonprofit Corporation to be distinguished from other corporations.
A Nonprofit Corporation is formed when the ability to make a profit is not taken
advantage of by the owners or shareholders. Instead, profits that are produced are
generally re-allocated to an organization, or to support a shared cause.
Why a Non-Profit is right for my business
You may choose to file a Nonprofit for the following benefits:
- Limited Liability Protection- A Nonprofit Corporation limits your
personal liability to no more than the original amount of the investment. Therefore,
owners of a Nonprofit cannot be held personally liable for business claims, debts,
or other liabilities.
- 501 (c)(3) Tax –Deductible Donations- A Nonprofit Corporation can
file under the Federal Tax Code 501 (c)(3) allowing for donations to be made by
individuals to the Nonprofit Corporation as tax-deductible.
- Tax-Exemption- Nonprofit Corporations can apply for a status in
both federal and state tax-exemptions.
- Public and Private Grant Access- Capital generation can be easier
for Nonprofit Corporations with the help of both public and private grants.
- Credibility- Filing a Nonprofit Corporation and keeping up with
associated formalities lends credibility to the company which offers assurance to
individuals interested in donating.
Non-Profit additional information:
- Nonprofit Formation- Filing a Nonprofit Corporation is very similar
to that of filing a “for-profit” corporation In that all of the similar documents
are applicable and all state fees must be paid.
- State Laws- State laws are very different for Nonprofit Corporation
in comparison to “for-profit” corporations. For a complete compliance guide unique
to your state of filing click here:
- Filing For Tax Exempt Status- In order to file for tax exempt status,
Form 1023 must be filed with the IRS and approved.
- 501(c)(3) Tax Exempt Status- 501(c)(3) tax exempt status is the
most common type of tax exempt status. Organizations that would fall under the 501(c)(3)
tax exempt status are: Charitable, Educational, Literary, Religious, and Scientific.
Testing for Public Safety, to Foster National or International Amateur Sports Competition,
or Prevention of Cruelty to Children or Animals Organizations.
How It Works
Now that you have decided a non-profit corporation best fits your business needs,
here is how it works:
- Select a name and we will check to see if it is available.
- Choose the state where you wish to file your entity.
- Determine whether or not you wish iCorp to acquire your EIN and perform the Registered
- Allocate corporate officers.
These four tasks can all be accomplished by filling out our fast and easy filing
application. The fees associated with each product and service will be listed in
your order summary and throughout the application.
Our online application will track your status as you proceed and will also save
all the information populated page by page.These four tasks can all be accomplished
by filling out our fast and easy filing application. The fees associated with each
product and service will be listed in your order summary and throughout the application.
After the application has been submitted you will receive a confirmation e-mail
with your order status and summary.
If we have questions or concerns, we simply give you a follow up call to clarify.
Again, help is only a phone call away. Give one of our knowledgeable representatives
a call to assist you with your order: 1-866-689-3989
What Is A Non-Profit Corporation?
A non-profit corporation is an entity formed in order to advance a particular program.
Non-profit organizations fall into five main categories: trade associations, charitable
organizations, social clubs, governmental groups, and political groups.
Is “Non-Profit” the Same as “Tax-Exempt”?
In short, the answer is, no. Filing your company as a Non-profit does not make you
tax-exempt from federal, and in some cases, state taxes. In order to have federal
tax-exempt status, Form 1023 must be filed with and approved by the IRS.
How Many Directors or Officers Are Non-Profit Corporations Required to Have?
Some states require only one director. However, the majority of states require a
nonprofit to have two or three directors.
Where Should I Form My Non-Profit Corporation?
There is no requirement to file your nonprofit corporation in the state where it
will be located. However, matters such as the state filing fees and the taxation
laws governing that state may be a concern. If the nonprofit has only a few directors
that will undertake most of its activities, primarily within a single state, filing
your nonprofit corporation locally is often the best decision. Filing as a foreign
nonprofit in the state where your business is physically located will usually result
in additional fees from the state….
What Steps Need to Be Taken to Form a Non-Profit Corporation?
First, your nonprofit Articles of Incorporation must be filed with the state and
initial fees must be paid. Your nonprofit must then hold an organizational meeting.
This is where bylaws are established and the incorporation process is fulfilled.
Documentation such as opening a bank account and other determinations of the nonprofit
corporation should be documented at this time.
What Are the Differences Between Officers, Directors and Shareholders?
Three components make up a corporation: officers, directors and shareholders. Each
component serves a fundamental role in the corporation. Shareholders elect the Directors
and are the owners of the corporation. Directors make the primary decisions of the
corporation on behalf of the shareholders and elect the Officers. Officers run the
day-to-day operations of the corporation. These components of the corporation can
be fulfilled by one person or can be divided.
What Are Bylaws?
Bylaws are not filed with the state but, instead are internal documents containing
guidelines for holding corporate meetings. Bylaws are also used to fulfill formalities
in accordance with state.
Can a Nonprofit Corporation Make a Profit?
A nonprofit corporation may produce a profit. However, this profit may not be distributed
to officers or directors, but may be used for operating expenses including salaries.
Surpluses (profits) must be reinvested back into the organization for its tax-exempt