Many countries and states classify corporations based on being profit-making or nonprofit corporations. The classification guides the processes involved in setting them up. In States such as Florida, 501C3 is used to classify nonprofit corporations. This simply gives guidelines for setting up such nonprofit corporations.
The United States anchors the process of setting up corporations on the internal revenue code. 501C3 happens to be a subsection under this code. This subsection is about laws governing nonprofit corporations. This subsection allows nonprofit corporations in America to not pay taxes. There are however conditions attached to this nonpayment of taxes. Helpful ventures related to education, religion, science among others can warrant such exemptions.
So, what do you require to start a 501C3 in American states such as Florida? It is mandatory that your corporation has at least three members sitting in the board of directors. The said members must be at least eighteen years old. Then you must name the corporation appropriately. This is followed by writing a mission statement for the corporation. The mission statement must include reasons for establishing the nonprofit corporation.
Having constituted a board of directors and mission statement, you can proceed to the phase of registering the nonprofit corporation. A filed article of incorporation is mandatory for registration of the corporation. This should have been filed with the secretary of state, division of corporations. Follow this by creating bylaws for your corporation. Hold meetings with the board of directors and keep records.
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. It is also at this juncture that you will register with 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. 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. First is the physical address. Give the street where the corporation is situated as well as general location. Secondly, the specific purpose of the nonprofit corporation must be stated. Thirdly, state how you will elect directors for the corporation. Similarly, you must also disclose the election procedure for constituting the board of directors for the corporation. 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.