In most jurisdictions, corporations are usually classified based on whether they are meant to generate profit or they are nonprofit corporations. The processes involved in setting up one is based on whether it is geared on profit-making or not. States such as Florida classify nonprofit corporations as 501C3. This simply gives guidelines for setting up such nonprofit corporations.
Setting up corporations in the United States is anchored on the internal revenue code. 501C3 happens to be a subsection under this code. 501C3 governs the establishment of nonprofit corporations. This subsection allows nonprofit corporations in America to not pay taxes. There are conditions that must be met for such exemptions. The corporation activities must be related to charity, religion, education, public safety, science among other helpful ventures to the ecosystem.
So, what do you require to start a 501C3 in American states such as Florida? It is mandatory that your corporation has at least three members sitting in the board of directors. The directors must also be at least eighteen years of age. Then the corporation must have a name. After coming up with the name, you are then required to have a mission statement. 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. It should have been filed at the division of corporations in the office of the secretary of state. 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.
If the above procedures have been followed, you can then obtain a registration number for your corporation. With this number in place, you can then register your corporation with the department of revenue in the state, say Florida. Similarly, proceed with registration with the department of consumer services. The final registration is with the IRS at the particular state. Registration with the IRS means that you can hire staff. 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. The first one is the physical address. Give the street where the corporation is situated as well as general location. Secondly, the specific purpose of the nonprofit corporation must be stated. 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. All these measures are meant to achieve transparency and accountability.