Best Nonprofit Services in 2025
By Kimberly Burton
updated on January 10, 2025 Forming a nonprofit takes advantage of private and public grants, lower postage rates, tax exemption statuses and allows individuals to donate money tax-free while protecting your personal assets.
What is a nonprofit organization
A nonprofit corporation is a business entity organized to raise money or distribute funds for certain types of organizations. They may be taxable or need to meet tax-exempt requirements. They are formed to benefit the public, a group of individuals or the members of the nonprofit. Examples are religious organizations, charity groups, political groups, and membership clubs.
Best nonprofit services in 2025
- Best overall – LegalZoom
- Best for affordable legal services – RocketLawyer
#1. Best LLC service – LegalZoom
BEST FOR: Nonprofit formation & legal services support
Pros & Cons
LegalZoom offers a wide range of personal and professional legal services. It has 20 years of experience in the industry and operates in all 50 states. LegalZoom provides local attorney support to ensure compliance with local laws and regulations. It also offers phone consultations and hands-on support for business insurance, taxes, and other legal activities.
#3. Best nonprofit service – RocketLawyer
BEST FOR: Simple nonprofit incorporation solution
Pros & Cons
You can register your Nonprofit or corporation with RocketLawyer for free if you purchase their subscription. I really like the fact that RocketLawyer can support my business with many simple legal services and contract templates including employment, trademarks other contracts and many more legal services. They help simplify a lot of the legal services which translate into significant services. If you are able to manage the modification required to some standard contracts and agreements and can just consult with a lawyer on final drafts we highly recommend considering their service.
How to start a nonprofit organization
Forming a nonprofit organization is a little more complicated than forming other business entities and it is recommended that you consult with a specialist to make sure you compliant with all state and federal regulations or use one of the top online nonprofit formation services we reviewed in this article. . Here are the general steps to forming a nonprofit corporation:
- Business Name – Choose a business name and perform a search of the Secretary of State to ensure it is available. Nonprofits have perpetual existence. If one of the directors leaves the company or passes away, the nonprofit does not cease
- Filing services – While you can prepare and file all paperwork yourself, it is recommended that you consult with a specialist who will ensure you are compliant
- Create Bylaws – Bylaws are specific rules and regulations written and adopted to control the actions of the members or employees. They must be filed along with other paperwork and are a requirement by the IRS
- Appoint directors – Nonprofits are governed by a Board of Directors. This is the governing body for the corporation. They have decision-making authority to set company policy, adopt bylaws, name members of committees, hire and monitor the executives, determine dividends and issue additional shares. The board of directors is liable for the actions of the firm’s policies and actions
- Hold an initial board meeting – The initial meeting of the board is held to appoint directors and bylaws
- Apply for licenses and permits – Certain nonprofits require licenses and permits before starting fundraising efforts
In which state should I form my nonprofit organization
Similar to other formation entities, you have options as to where it is best to file your paperwork. In general, most nonprofit corporations are formed in the state in which they will primarily operate. There are some advantages of this, including ease of filing if you are going to concentrate your work in one particular state, and there are no franchise taxes. In short, filing in your home state is less expensive and cumbersome with relation to filing annual reports.
If your intention is to have business locations in multiple states or abroad, you will need to choose a single state to file in and then register to do business, file annual reports and pay feeds in every other state where you do business.
Do I need to designate a registered agent
Yes, all corporations are required to designate a Registered Agent and physical address with the Secretary of State. A person must be located at the address and able to accept and sign for legal documents and state correspondence. If your business has more than one location or operates in multiple states, there are services available to perform this function.
Do I need to register a nonprofit in order to organize a fundraiser
Yes, in order to receive donations from residents of the state, many states require registration as a nonprofit with the Secretary of State. If the nonprofit has more than $25,000 in annual income. The IRS requires disclosure of all states where you are doing business. There are harsh penalties for failing to register
Ready to file
A nonprofit organization is a wonderful way to give back to the community and be of service to those less fortunate. Filing Articles of Incorporation will legitimize your cause in the eyes of your donors and keep you compliant with rules and regulations of the IRS and State Agencies. You can go through this whole process on your own, or hire an online agency.