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. 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. It mainly focusses on the laws that govern taxes for 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? First of all, the corporation must have a minimum of three members 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. The name is followed by the generation of 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. 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. Having done that, create bylaws for the corporation. Hold meetings with the board of directors and keep records.
If the above procedures have been followed, you can then obtain a registration number for your corporation. Registration of the corporation with the department of revenue can then be done. Similarly, proceed with registration 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. 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. The first one 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, describe the formula to be used when electing directors for the nonprofit 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.