Many countries and states classify corporations based on being profit-making or nonprofit corporations. The processes involved in setting up one is based on whether it is geared on profit-making or not. States such as Florida classify nonprofit corporations as 501C3. This gives guidelines on starting them as well as the rules and regulations to be followed.
The internal revenue code is the basis for setting up corporations in the United States. One of these codes is the subsection 501C3. This subsection is about laws governing nonprofit corporations. This subsection allows nonprofit corporations in America to not pay taxes. However, the corporation must fulfil certain conditions. The corporation activities must be related to charity, religion, education, public safety, science among other helpful ventures to the ecosystem.
So, what do you require to start a 501C3 in American states such as Florida? First of all, the corporation must have a minimum of three members in the board of directors. The minimum age of such directors is required to be eighteen. Then the corporation must have a name. After coming up with the name, you are then required to have a mission statement. The mission statement must include reasons for establishing the nonprofit corporation.
Registration of the corporation can be done after having the directors and the mission statement. To have your corporation registered, you need to have a filed article of incorporation. The office of the secretary of state, division of corporations is the place where the article should be filed. Follow this by creating bylaws for your corporation. Records of the corporation must be kept after holding meetings with the board of directors.
An employer registration number can be obtained if you have fulfilled all the procedures above. Registration of the corporation with the department of revenue can then be done. Similarly, proceed with registration with the department of consumer services. The last registration point is with the IRS in the state where the corporation will operate. This will enable you to hire staff for your nonprofit corporation. Having staff means that the corporation can start operating.
There is also other biodata information that must be availed to the state and the organs of registration for your corporation to be registered and allowed to operate. The first one is the physical address. You can give the street and the general location. Then give the specific purpose of the corporation. Thirdly, describe the formula to be used when electing directors for the nonprofit corporation. Similarly, you must also disclose the election procedure for constituting the board of directors for the corporation. With such measures, the state will be sure that the nonprofit corporation will operate based on transparency and accountability.