Form a Not-For-Profit Corporation

What is the difference between non-profit and tax-exempt status?

Non-profit status, (also known as "not-for-profit") is a state law concept. Non-profit status may make an organization eligible for certain benefits, such as state sales, property, and income tax exemptions. Although most federal tax-exempt organizations are non-profit organizations, organizing as a non-profit organization at the state level does not automatically grant the organization exemption from federal income tax. A non-profit seeking exemption from federal income taxes must receive approval from the IRS. The not-for-profit must submit the proper applications and must satisfy requirements set forth in the Internal Revenue Code. The non-profit articles of incorporation require specific language in order to receive federal tax exempt status.

Why choose a Not-For-Profit Corporation?

Not-for-profit organizations, (also known as "non-profit") enjoy certain tax benefits. Not-profit organizations may be exempt from state sales, property, and income taxes. Most not-for-profit organizations seek federal tax exempt status. A not-for-profit organization seeking exemption from federal income taxes must receive approval from the IRS.

How do I form a Not-for-Profit Corporation?

Corporation formation requires filing the appropriate "Articles of Incorporation" generally with the Secretary of State (SOS). Not-for-profit corporations have very specific state requirements as to the articles of incorporation content.

The Articles of Incorporation requirements vary from state to state.

The corporate name must be distinguishable from the name of any other LLC, corporation, limited partnership, or company incorporated, organized or authorized to transact business, in that State. The specific state fees must be paid to the state before the corporate filing will be accepted by that state.

Each state has unique procedures along with accompanying cover letters, and specific documentation to be submitted.