A Non-Profit Corporation is an entity formed for purposes other than making a profit. Nonprofit corporations are formed according to different state laws than standard for-profit corporations; however, creating a nonprofit is very similar. Nonprofits must apply for federal and state (if applicable) tax-exempt status to be considered tax-exempt.

Tax-exempt status is not automatically granted once the nonprofit corporation is formed. Form 1023 must be filed with the IRS to apply for federal tax-exempt status. See Below.**

 

Like other standard for-profit corporations, nonprofits provide limited liability protection. The personal assets of the directors or officers typically cannot be used to satisfy the debts and liabilities of the nonprofit.

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To qualify for federal tax-exempt status under 501(c)(3) of the Internal Revenue Code, the nonprofit must be organized and operate for some religious, educational, charitable, scientific, or literary purpose permitted under this code.

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Advantages of a nonprofit corporation:

 

• Directors are typically not personally responsible for the debts and liabilities of the nonprofit corporation.
   

• Nonprofit corporations can apply for both federal and state tax-exempt status.
   

• Certain nonprofit corporations are eligible to receive public and private grants, making obtaining operating capital easier.
   

• With 501(c)(3) nonprofits, donations made by individuals to the nonprofit corporation are tax-deductible.
   

To form a nonprofit corporation, nonprofit articles of incorporation or a nonprofit certificate of incorporation must be filed with the appropriate state agency, and the necessary state filing fees paid. The formation documents must include specific clauses and information, such as a detailed business purpose statement, for the entity to qualify for tax-exempt status. After that, form 1023 must be filed with the IRS.

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All formations come with the following:
 

• Preliminary Name Check with the State
   

• Preparation and Filing of All Articles of Incorporation
   

• Free Registered Agent Service for 12 months
   

• Next-Day Expedited Processing Service
   

• ​Corporate Kit & Seal (Optional But Highly Recommended)

  • ​A professional binder enclosed in a matching slip-case

  • 20 full-page, numbered, custom-made stock certificates printed with your corporate name

  • Complete Professional Customized Bylaws

  • Sample minutes of an organizational meeting
     

• Tax ID (EIN) Obtainment.
   

• Lifetime Company Alerts
   

• PDF File with Banking resolutions, Meeting Minutes, Addendums, and Business Contract Templates
   

• Certified Copy of State Filed Documents

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*  Formation Pricing

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** EXEMPTION STATUS

Get your organization's exempt status recognized nine months sooner by having us file IRS Form 1023
(Click here for more info  $700 additional cost. IRS filing fee included. Select the Recommended Option at checkout.