In most jurisdictions, corporations are usually classified based on whether they are meant to generate profit or they are 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. 501C3 guides the setting up of the nonprofit corporation.
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. 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. 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? It is mandatory that your corporation has at least three members sitting in the board of directors. The minimum age of such directors is required to be eighteen. 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.
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. It should have been filed at the division of corporations in the office of the secretary of state. Follow this by creating bylaws for your 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. Registration of the corporation with the department of revenue can then be done. You should also seek registration at the department of consumer services. The last registration point is with the IRS in the state where the corporation will operate. Hiring of staff can happen after registration with IRS. The corporation can then start operations.
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 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. With such measures, the state will be sure that the nonprofit corporation will operate based on transparency and accountability.