In most jurisdictions, corporations are usually classified based on whether they are meant to generate profit or they are nonprofit corporations. They are set up based on this classification. States such as Florida classify nonprofit corporations as 501C3. This simply gives guidelines for setting up such nonprofit corporations.
The internal revenue code is the basis for setting up corporations in the United States. One of these codes is the subsection 501C3. 501C3 governs the establishment of nonprofit corporations. Nonprofit corporations in the United States are exempted from paying taxes based on this subsection. There are however conditions attached to this nonpayment of taxes. One of them is that the activities of the corporation must be helpful to the ecosystem such as being educative, religious, scientific among others.
So, how does one start a 501C3 in states such as Florida? First of all, the corporation must have a minimum of three members in the board of directors. The directors must also be at least eighteen years of age. The next step involves coming up with a suitable name for your nonprofit corporation. 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.
With the mission statement in place, the corporation can then be registered. To have your corporation registered, you need to have a filed article of incorporation. This should have been filed with the secretary of state, division of corporations. Having done that, create bylaws for the corporation. At this point, you can hold meetings with the board of directors and create a bookkeeping procedure for records.
An employer registration number can be obtained if you have fulfilled all the procedures above. After this, register with the department of revenue. You should also seek registration at the department of consumer services. The final registration is with the IRS at the particular state. Hiring of staff can happen after registration with IRS. Operations of the corporation can then commence.
There is some extra biodata information about the nonprofit corporation that must be availed to the state and registration agencies. First of all, the physical address of the corporation must be availed for accountability. Here we are talking about the location and the address of the street. Secondly, the specific purpose of the nonprofit corporation must be stated. Thirdly, you must also declare the formula used to elect directors for the corporation. It is also at this point that you should state how elections for the board of directors of the nonprofit corporation will be conducted. The measures above are not punitive but will aid in ensuring that the nonprofit organization operates with transparency and would be able to be accountable to the state on all its operations.