Create your nonprofit

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How to start your nonprofit

Step 1

Let us know your business details and needs.

Our form will walk you through all the important decisions and information.

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Step 2

Relax as we handle your nonprofit formation.

We make the paperwork and file it with the secretary of state (SOS).

Step 3

Start doing business!

We provide the documents, resources, and next steps for your business bank account, free tax consultation, and more!

The benefits of forming a nonprofit

Tax Exemption

Nonprofits approved by the IRS are exempt from paying federal income taxes.

Liability Protection

Directors and employees are shielded from becoming personally responsible for the corporation's debts and obligations.

Fundraising

Nonprofits are eligible to receive grants and tax-deductible donations, making them ideal for fundraising.

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Everything you need to know about nonprofits

What is a nonprofit corporation?

A nonprofit corporation is a business structure formed to pursue a charitable, educational, religious, or other public-benefit purpose rather than to generate profit for owners. Like a standard corporation, it exists as a separate legal entity, which shields its directors and officers from personal responsibility for the organization's debts and liabilities.

Forming as a nonprofit corporation is also the structure the IRS expects to see when an organization later applies for 501(c)(3) tax-exempt status, since the organizational and governance requirements line up directly with federal exemption rules.

How do I form a nonprofit corporation?

A nonprofit corporation is formed by choosing a unique business name, appointing a registered agent located in your state of formation, and filing Articles of Incorporation with the Secretary of State. From there, it's important to apply for an Employer Identification Number (EIN) from the IRS and, separately, apply for federal tax-exempt status by filing Form 1023 or Form 1023-EZ with the IRS.

Many nonprofit corporations also adopt bylaws to formalize how the organization will be governed

What are Articles of Incorporation?

Articles of Incorporation give your state's Secretary of State or Company Registrar the information required to determine whether to approve a new nonprofit corporation.

For nonprofit corporations, the Articles typically must include a statement of charitable purpose and a dissolution clause specifying that assets will go to another exempt organization if the nonprofit ever dissolves. These provisions are often required to qualify for federal tax-exempt status later, so it's worth getting them right at formation rather than amending them afterward.

Do I need bylaws for a nonprofit corporation?

Bylaws set the internal rules for how your nonprofit corporation will operate.

This foundational document defines the rights and duties of the board of directors and officers, and outlines how the organization will be governed. Bylaws typically address board composition and terms, meeting and voting procedures, officer roles, and conflict-of-interest policies.

Learn more about Corporate Bylaws

How does a nonprofit corporation limit liability?

A nonprofit corporation is a legal entity formed separately from the people who run it, and it can incur its own debts, expenses, and obligations related to its activities.

This structure creates a legal separation between the organization and its directors, officers, and members, shielding them from personal liability if the nonprofit faces financial or legal trouble.

It's important to note that this protection isn't absolute. It can be compromised if directors or officers fail to maintain proper governance practices, commingle funds, or engage in fraudulent activity.

What does it mean for a nonprofit to be tax-exempt?

Tax-exempt means the nonprofit doesn't have to pay federal income tax on money it earns from activities related to its mission: things like donations, grants, and program revenue tied to its exempt purpose. The IRS has recognized the organization as operating for a qualifying public-benefit purpose, and in exchange it's excused from federal income tax on mission-related revenue — but it's a status that has to be applied for, maintained, and can be lost.

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Frequently asked questions

Are donations to a nonprofit always tax-deductible for donors?

Donations are generally tax-deductible only if the nonprofit has been recognized as a 501(c)(3) organization by the IRS. Donors should confirm an organization's exempt status, since contributions to a nonprofit corporation that hasn't yet received (or has lost) its determination letter typically aren't deductible.

What is a 501(c)(3) organization?

A 501(c)(3) organization is a nonprofit that has received IRS recognition as exempt from federal income tax because it operates exclusively for religious, charitable, scientific, literary, or educational purposes. This status also allows donors to deduct qualifying contributions on their own tax returns. Not every nonprofit corporation is a 501(c)(3); the designation only applies once the IRS has approved the organization's exemption application.

Can a nonprofit lose its tax-exempt status?

Yes. A nonprofit can lose its 501(c)(3) status by failing to file required annual returns, engaging in excessive lobbying or political campaign activity, or operating for the private benefit of individuals rather than its stated exempt purpose. Reinstatement after revocation generally requires reapplying to the IRS and, in some cases, paying a fee.

What's the difference between a nonprofit corporation and an LLC?

A nonprofit corporation is organized around a charitable or public-benefit purpose and is governed by a board of directors rather than owners. An LLC, by contrast, is a for-profit structure owned by members who can share in the company's profits. Most organizations seeking donations, grants, or federal tax-exempt status form as nonprofit corporations rather than LLCs, since the corporate structure aligns directly with IRS requirements.

Does forming a nonprofit corporation automatically make it tax-exempt?

No. Incorporating as a nonprofit at the state level and obtaining federal tax-exempt status are two separate steps. After filing Articles of Incorporation, an organization must still apply to the IRS for 501(c)(3) status, and it may need to apply separately for state-level tax exemptions as well. Until that federal approval comes through, the organization is a nonprofit corporation but not yet a tax-exempt one.