Corporations the world over are categorized into profit-making and nonprofit making. They are set up based on this classification. When it comes to nonprofit corporations, they are classified as 501C3 in states such as Florida. This gives guidelines on starting them as well as the rules and regulations to be followed.
The United States anchors the process of setting up corporations on the internal revenue code. 501C3 happens to be a subsection under this code. 501C3 governs the establishment of nonprofit corporations. Based on this subsection, nonprofit corporations in the US are exempted from paying taxes. However, the corporation must fulfil certain conditions. Helpful ventures related to education, religion, science among others can warrant such exemptions.
So, how does one start a 501C3 in states such as Florida? The first one is having at least three members of the corporation in the board of directors. The said members must be at least eighteen years old. 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 statement must capture the main intention of the nonprofit corporation.
Registration of the corporation can be done after having the directors and the mission statement. For the corporation to be registered, there must be a filed article of incorporatin. The office of the secretary of state, division of corporations is the place where the article should be filed. Bylaws for the corporation can then be generated. Records of the corporation must be kept after holding meetings with the board of directors.
If the above procedures have been followed, you can then obtain a registration number for your corporation. With this number in place, you can then register your corporation with the department of revenue in the state, say Florida. Similarly, proceed with registration with the department of consumer services. The final registration is with the IRS at the particular state. Registration with the IRS means that you can hire staff. Having staff means that the corporation can start operating.
Further information about the nonprofit corporation must be given to the state and particularly the agencies that are tasked with registration of nonprofit corporations. First of all, the physical address of the corporation must be availed for accountability. Give the street where the corporation is situated as well as general location. After that, state the exact purpose for the corporation being set up. Thirdly, state how you will elect directors for the corporation. You must also describe how you will hold elections for the board of directors and all the measures to be put in place for such elections to be smooth and produce fair results. 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.