When forming any type of entity, it requires a lot of time, dedication, and knowledge to understand and get through the process of creating an organization. You want to serve your community in the right ways, and that means ensuring you begin with your best foot forward. That’s why we will discuss nonprofit formation in this series of articles! So without further ado, here are the first three steps to forming a nonprofit.
Speak with an attorney.
While it is possible to create a nonprofit organization and file all of the paperwork by yourself, having a professional familiar with the legal needs of a nonprofit is a must. Nonprofit lawyers are able to help guide you through the more complex or difficult-to-understand steps of forming a nonprofit. Since the laws for nonprofit organizations vary state by state, an attorney with nonprofit know-how is a must while you navigate through starting your organization.
Incorporate your nonprofit.
Your second step is to incorporate your nonprofit. A 501(c)(3) is a corporation formed for not-for-profit purposes, and this is the type of corporation you will be forming. First, you should establish a legal structure for your nonprofit at the state level. You will need a name for your nonprofit organization, and then you will need to file for your Employment Identification Number (EIN), so you can file for tax returns, open a bank account, and hire employees.
Select your board of directors.
Every nonprofit needs a board of directors to give your organization direction and insight. This board will not only set the policy for your nonprofit organization but come up with ways to ensure your nonprofit is successful. The IRS requires that there are at least three board members who are not related to each other by blood or marriage, but you are allowed to have more people if you want to. Each board member should provide unique skills, assets, or perspectives that will push your nonprofit organization to go above and beyond!
Now that you have a handle on the first three steps to creating a nonprofit, you can start thinking about what comes next. The nonprofit formation may seem intimidating at first, but with the right people by your side, you will be able to make a lasting impact on your community and beyond. Keep an eye out for the next two articles as we continue to cover how to form a nonprofit organization.
Do you need an attorney to help navigate nonprofit law? Contact Epstein Law today! > > https://www.epsteinlawllc.com/contact