Many countries and states classify corporations based on being profit-making or 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 internal revenue code is the basis for setting up corporations in the United States. 501C3 is one of the subsections in such codes. It mainly focusses on the laws that govern taxes for nonprofit corporations. This subsection allows nonprofit corporations in America to not pay taxes. There are conditions that must be met for such exemptions. 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 directors must also be at least eighteen years of age. Then the corporation must have a name. The name is followed by the generation of 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. For the corporation to be registered, there must be a filed article of incorporatin. This should have been filed with the secretary of state, division of corporations. Bylaws for the corporation can then be generated. At this point, you can hold meetings with the board of directors and create a bookkeeping procedure for 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. You should also seek registration at the department of consumer services. The final registration is with the IRS at the particular state. This will enable you to hire staff for your nonprofit corporation. Having staff means that the corporation can start operating.
There is some extra biodata information about the nonprofit corporation that must be availed to the state and registration agencies. First is the physical address. 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, 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. All these measures are meant to achieve transparency and accountability.