Many countries and states classify corporations based on being profit-making or nonprofit corporations. They are set up based on this classification. In States such as Florida, 501C3 is used to classify nonprofit corporations. 501C3 guides the setting up of the nonprofit corporation.
The internal revenue code is the basis for setting up corporations in the United States. 501C3 is one of the subsections in such codes. 501C3 governs the establishment of nonprofit corporations. Nonprofit corporations in the United States are exempted from paying taxes based on this subsection. There are conditions that must be met for such exemptions. Helpful ventures related to education, religion, science among others can warrant such exemptions.
So, how do you establish a 501C3 in a state like Florida? It is mandatory that your corporation has at least three members sitting in the board of directors. The minimum age of such directors is required to be eighteen. Then the corporation must have a name. The name is followed by the generation of a mission statement. The mission statement must include reasons for establishing 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. Bylaws for the corporation can then be generated. Hold meetings with the board of directors and keep records.
A registration number for the corporation can be obtained subject to following the above procedures to the latter. Registration of the corporation with the department of revenue can then be done. It is also at this juncture that you will register with the department of consumer services. The last registration point is with the IRS in the state where the corporation will operate. Hiring of staff can happen after registration with IRS. The corporation can then start operations.
There is some extra biodata information about the nonprofit corporation that must be availed to the state and registration agencies. First of all, the physical address of the corporation must be availed for accountability. Give the street where the corporation is situated as well as general location. Then give the specific purpose of the corporation. Thirdly, you must also declare the formula used to elect directors for the 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. With such measures, the state will be sure that the nonprofit corporation will operate based on transparency and accountability.