Many countries and states classify corporations based on being profit-making or nonprofit corporations. They are set up based on this classification. In States such as Florida, 501C3 is used to classify nonprofit corporations. 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. This subsection is about laws governing nonprofit corporations. This subsection allows nonprofit corporations in America to not pay 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 minimum age of such directors is required to be eighteen. Then you must name the corporation appropriately. 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.
Registration of the corporation can be done after having the directors and the mission statement. 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. 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. After this, register with the department of revenue. 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. After that, state the exact purpose for the corporation being set up. Thirdly, describe the formula to be used when electing directors for the nonprofit 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. 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.