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.
Setting up corporations in the United States is anchored on the internal revenue code. One of these codes is the subsection 501C3. 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 do you establish a 501C3 in a state like 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 mission statement must include reasons for establishing the nonprofit corporation.
Having constituted a board of directors and mission statement, you can proceed to the phase of registering the nonprofit corporation. 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. 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.
A registration number for the corporation can be obtained subject to following the above procedures to the latter. With this number in place, you can then register your corporation with the department of revenue in the state, say Florida. It is also at this juncture that you will register with the department of consumer services. Finally, you are required to register with the IRS in the state. This will enable you to hire staff for your nonprofit corporation. Operations of the corporation can then commence.
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. Here we are talking about the location and the address of the street. After that, state the exact purpose for the corporation being set up. 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.