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A nonprofit business is created to benefit the public or a specific group.
Owning a nonprofit business is an honorable endeavor. To be considered a nonprofit company, a business must be created to benefit either the public or a specific group. As you embark on your new business, there are a few simple steps to get started.
Instructions
1. Choose a name. Check with the Division of Corporations in your state to search through fictitious names and see if the one you have chosen is available. Once you find one that is not taken, be sure to register it.
2. File with the Internal Revenue Service (IRS) so that your nonprofit business will receive tax exempt status. There are different types of nonprofit businesses, and you can choose the type that best fits your company. Go to http://www.IRS.gov/charities/index.html for information on tax exemption for charities and other nonprofit businesses. In addition, you will need to apply for an employer identification number with the IRS.
3. Register as a nonprofit corporation by contacting your state's Division of Corporations. You can do this online in most states. You will need to submit an annual report, list officers, and include your articles of incorporation that describe your nonprofit business's purpose.
4. File with your state revenue office. If your nonprofit business is selling goods, you will need to file with your state Department of Revenue to collect sales tax.
5. Check with your city hall or Chamber of Commerce to determine if a local business license is required for your nonprofit business.
6. Register to solicit contributions. If your nonprofit business will be soliciting contributions, your state may require you to register. Check with your state's consumer affairs office to find out if this is necessary. Many states have solicitors of contributions file annual reports stating how much has been raised and the percentage of funds collected that actually go toward the cause that the nonprofit corporation is promoting.
