Form a Non-Profit Corporation
Impose positive change with a non-profit and get the proper backing from donors. Pursue your non-profit mission, whether it’s starting a religion, helping the homeless or animals in need of care. Allow us to take care of the paperwork while you take care of your righteous cause.
What Distinguishes a Nonprofit Corporation?
If you are considering forming a non-profit corporation, it is likely because you have the desire to do more for the greater good. Helping others, leaving the earth better than we found it, conducting ground-breaking research, providing access to the arts – these reasons and more are why others have started a nonprofit.
To learn more about nonprofits, visit our Basics page to help determine if your business is best suited as a nonprofit, what you’ll need to get started and how to govern this type of organization.
How to Start a Non-Profit Corporation
Like other business entities, the actual process for forming a nonprofit organization begins with incorporation. Requirements vary from state to state, and federal requirements need considering if the organization wishes to file for tax-exempt status. Additionally, the organization should create a mission statement to determine whom the organization will serve, and corporate bylaws which will lay out the rules for operating. While this may seem overwhelming, our step-by-step guide can help you make sense of it all. Review the Non-Profit Checklist.
Advantages of a Nonprofit
Unlike corporations, limited liability companies and other business entities, non-profit corporation’s are formed for reasons other than just generating cash. Once a non-profit corporation has been incorporated and identified as a 501(c)(3) by the IRS, the organization is able to apply for grants and donations to help fund their mission. These grants allow for additional research or provide support to special projects.
Visit our Benefits page to learn more about additional privileges including tax breaks, liability protection similar to a corporation or LLC, and more.
Why Choose DoMyLLC?
Starting a non-profit corporation doesn’t have to be difficult. Our dedicated team makes the process as simple as possible, with a little help from our straightforward, two-step filing system. We offer a competitive price, individual care and live support, resulting in a superior level of service and guaranteed customer satisfaction.
Comparison Chart
Liability Protection →
Pass Through Taxation →
Articles of Organization →
Complex Management Structure →
Formal Business Structure →
Perpetual Existence →
Year Compliance Requirements →
Raising Capital →
LLC
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Liability Protection →
LLC‘s provide personal liability and asset protection. Members (owners) are not held personally liable for the debts of the company.
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Pass Through Taxation →
LLC‘s are not taxed at the Corporate level. The profits and losses pass through to the members to report with their personal income tax.
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State Filing Fees →
Although fees vary by state, LLC‘s are required to pay a filing fee along with the article of organization to set up an LLC.
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Complex Management Structure →
LLC‘s can be Member-Managed or Manager-Managed. In a Member-Managed LLC the owners(s) of the company run the day to day activities of the LLC. In a Manager-Managed LLC the member(s) elect a manager(s) to run the day to day activates of the LLC.
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Formal Business Structure →
LLC‘s have a very informal business structure. LLC‘s have become very popular to form for this reason. LLC‘s are not required to hold meetings, document minutes of meetings, issue stock or elect directors.
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Perpetual Existence →
LLC‘s can be either perpetual or have a finite end date. The existence term of an LLC is usually documented in the operating agreement of the company. Some states require on the article of organization to list a termination date or list a perpetual existance. If perpetual, the company will continue to exist if the member(s) die or if member(s) interests are transferred.
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Year Compliance Requirements →
Most states require LLC‘s to file an annual report or pay a franchise tax on a yearly or biennial basis. Some states do not require any filings.
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Raising Capital →
Since LLC‘s do not have stock to issue they can not sell stock to raise capital. LLC‘s are a separate legal entity and can earn credit, they can also obtain bank loans to raise capital. LLC‘s can get capital from existing member(s) or take on additional member(s) if approved in their operating agreement.
C-Corp
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Liability Protection →
C-Corps provide personal liability and asset protection. Officers, Directors, and Shareholders are not held personally liable for the debts of the company.
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Pass Through Taxation →
C-Corps are double taxed. The company is taxed at the corporate level and dividends distributed to share holders are taxed as well.
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State Filing Fees →
Although fees vary by state, C-Corps are required to pay a filing fee along with the articles of incorporation to set up an C-Corp.
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Complex Management Structure →
C-Corps have shareholders, directors and officers. The shareholders are the owners of the company. The directors are elected by the shareholders and they appoint/elect officers to run the day to day activities of the business. People can hold multiple offices. A C-Corp can have one person who is the only shareholder, directors and officer.
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Formal Business Structure →
C-Corps have a very formal structure. C-Corps are required to have bylaws, hold annual meetings, document minutes of meetings, issue stock and elect directors. Failure to comply with these formalities could cause the corporate veil to be pierced.
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Perpetual Existence →
C-Corps are a separate legal entity and have a perpetual existence. The corporation survives death and the transferring of stock by the shareholders.
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Year Compliance Requirements →
Most states require C-Corps to file a annual report or pay franchise taxes on a yearly or biennially timeline. These fees can range from $10-$1,000 depending on state guidelines Some states do not require any filings.
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Raising Capital →
C-Corps can raise capital through selling various types of stock. Once someone purchases stock, they become a shareholder and business owner. Since C-Corps are a separate legal entity and can earn credit they can also obtain bank loans to raise capital.
S-Corp
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Liability Protection →
S-Corps provide personal liability and asset protection. Officers, Directors and Shareholders are not held personally liable for the debts of the company.
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Pass Through Taxation →
S-Corps are not taxed at the Corporate level. The profits and losses pass through to the shareholders to report with their personal income tax.
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State Filing Fees →
Although fees vary by state, S-Corps are required to pay a filing fee along with the articles of incorporation to set up an S-Corp.
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Complex Management Structure →
S-Corps have shareholders, directors and officers. The shareholders are the owners of the company. The directors are elected by the shareholders and they appoint/elect officers to run the day to day activities of the business. People can hold multiple offices. A S-Corp can have one person who is the only shareholder, director and officer.
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Formal Business Structure →
S-Corps have a very formal structure. S-Corps are required to have bylaws, hold annual meetings, document minutes of meetings, issue stock and elect directors. Failure to comply with these formalities could cause the corporate veil to be pierced.
-
Perpetual Existence →
S-Corps are a separate legal entity and have a perpetual existence. The corporation survives death and the transferring of stock by the shareholders.
-
Year Compliance Requirements →
Most states require S-Corps to file a annual report or pay franchise taxes on a yearly or biennially timeline. These fees can range from $10-$1,000 depending on state guidelines. Only a handful of states do not have a annual or biennial filing requirement.
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Raising Capital →
S-Corps can raise capital through selling various types of stock. Once someone purchases stock, they become a shareholder and business owner. Since S-Corps are a separate legal entity and can earn credit they can also obtain bank loans to raise capital.
DBA
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Liability Protection →
Owners have no personal liability or asset protection. Owners are held personally liable for the debts of the company.
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Pass Through Taxation →
DBAs are not taxed at the corporate level. Profits and losses are reported by the owner/owners with their personal income taxes.
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State Filing Fees →
Most DBA filings are done at the county level and do not require a state formation fee. Some states do require a state level registration and filing fee.
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Complex Management Structure →
DBA owner/owners run ALL day to day activates of the company and have no restrictions within their role.
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Formal Business Structure →
No corporate formalities are required.
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Perpetual Existence →
A DBA ends with the death of the owner(s) or upon closing the business.
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Year Compliance Requirements →
No ongoing maintenance or yearly filing requirements.
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Raising Capital →
Capital is generally raised through bank loans since DBAs can not issue stock.
Non-profit corporations must first file as a non-profit with the state they are located in. Once this has been completed successfully, 501c filings can proceed. Among other things, this designates the corporation as non-profit and therefore exempt from IRS taxation.
FAQ
A Non-profit Corporation is exactly what it says, “Nonprofit.” Unlike a C-Corp, Nonprofits do not have stock, hence they have no owner. Like C-Corporations there is a board of directors and officers that run the organization.
Unlike General for Profit Corporations, there is an additional step in filing a Nonprofit Corporation. After the articles of Incorporation are filed with the Secretary of state the Nonprofit must file to become, “Tax Exempt” with the IRS.
Federal tax exemption 501C provides that there are 28 types of nonprofit organizations (501C 1-28) that are exempt from some federal income taxes. Once the exemption is approved by the IRS, the filings required to become a nonprofit corporation are complete. Under this tax code the company is not allowed to pay dividends and if the company is ever dissolved all assets must be distributed to another nonprofit corporation.
There are formal requirements in order to maintain corporate liability protection for owners of the corporation. Corporations are required to:
- Maintain bylaws
- Hold annual meeting
- Hold annual meeting
- File state annual reports
- File taxes
For a complete list of FAQ, please visit here.
Ready to Start Your Nonprofit Corporation?
Our team is ready to handle all the paperwork required for you to form a nonprofit; all you need to do is complete your order of $99 (plus applicable state taxes), then sign and verify a few documents. The entire process takes very little time thanks to our convenient two-step process.
Package Includes:
- Name Availability Check
- Articles of Incorporation
- Sample Bylaws
- Notices of Various Corporate Meetings
- Minutes to Document Meeting
- Compliance Calendar
If you are interested in starting a Nonprofit Corporation, give our office a call at 888-366-9552.