Corporations the world over are categorized into profit-making and nonprofit making. The processes involved in setting up one is based on whether it is geared on profit-making or not. In States such as Florida, 501C3 is used to classify nonprofit corporations. 501C3 guides the setting up of the nonprofit corporation.
Setting up corporations in the United States is anchored on the internal revenue code. 501C3 is one of the subsections in such codes. This subsection is about laws governing nonprofit corporations. Based on this subsection, nonprofit corporations in the US are exempted from paying taxes. There are however conditions attached to this nonpayment of taxes. One of them is that the activities of the corporation must be helpful to the ecosystem such as being educative, religious, scientific among others.
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 minimum age of such directors is required to be eighteen. Then the corporation must have a name. This is followed by writing a mission statement for the corporation. The statement must capture the main intention of the nonprofit corporation.
Having constituted a board of directors and mission statement, you can proceed to the phase of registering the nonprofit corporation. To have your corporation registered, you need to have a filed article of incorporation. The office of the secretary of state, division of corporations is the place where the article should be filed. Having done that, create bylaws for the corporation. Hold meetings with the board of directors and keep records.
An employer registration number can be obtained if you have fulfilled all the procedures above. Registration of the corporation with the department of revenue can then be done. 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. Registration with the IRS means that you can hire staff. 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. First is the physical address. Here we are talking about the location and the address of the street. Then give the specific purpose of the corporation. Thirdly, you must also declare the formula used to elect directors for the corporation. Similarly, you must also disclose the election procedure for constituting the board of directors for the corporation. 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.