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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. 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.

Where 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.

If I want to organize a fundraiser, do I need to register my nonprofit?

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 and report your income.

Additional LLC & business services

Do I need to appoint a registered agent?

Yes, in most states, appointing a registered agent is mandatory. We highly recommend using a professional registered agent service. All brands listed on our charts offer professional registered agent services.

BOIR for business

Starting in 2024, new and existing U.S. businesses must submit the ‘Beneficial Ownership Information Report’ (BOIR) to FinCEN. This report includes personal information about key individuals in the company including the entity, its beneficial owners, and in some cases its company applicants. The top LLC filing services listed on our chart can help you with the BOIR requirement.

Business license

Many businesses might require licenses or permits. The license and permits requirements will depend on the type of business as well as the state in which you incorporate your business. Professional business formation services can help you obtain a business license in all 50 states and assist with submitting your BOIR.

Same day LLC filing

Rush LLC filing is available in the Pro and Premium packages with most of our top business formation services or as an upgrade to the free LLC package. ZenBusiness offers a comprehensive service that includes everything you need to launch your business. Their Pro package, priced at $199 plus state fees, covers all necessary steps for business formation.