Before you start a nonprofit, you’ll need to know several things, including what you are going to call your company, what your purpose is, and who will serve on the board. Before you visit a business attorney to help you get started, it helps if you have thought out these items.
Nonprofit Name
When you choose the name for your nonprofit, it has to follow certain rules. For instance, the name cannot be in conflict with another company’s name, it must be available. If you plan to enter other states, the name needs to be available in all of the states the nonprofit will operate in.
Purpose
If you plan to apply to be exempt under I.R.C. § 501(c)(3), you will need to determine what the nonprofit’s purpose is, i.e., charitable, religious, educational, scientific literacy, testing for public safety, fostering national or international amateur sports competition, or preventing cruelty to children or animals. The IRS defines the term charitable as “relief of the poor, the distressed, or the underprivileged; advancement of religion; advancement of education or science; erection or maintenance of public buildings, monuments, or works; lessening the burdens of government; lessening neighborhood tensions; eliminating prejudice and discrimination; defending human and civil rights secured by law; and combating community deterioration and juvenile delinquency.”
Incorporators and Directors
You’ll also need to know who your directors are. You are the incorporator since you will be signing the documents, but you can have more than one incorporator. Typically, you should name at least three people to serve as directors and you must identify officers for the nonprofit. The directors must be over 18 years of age. You also need to identify the President, Treasurer and Secretary of the nonprofit.
Registered Agent
Finally, you need to know who will serve as your registered agent. This person must be available at all times during business hours. The registered agent receives all legal notices for your nonprofit company. Georgia law states that the registered agent must have a physical office in the state, and someone must be present in the office at all times during business hours.
Documentation
Once you have this information, your attorney can work with you to start preparing your articles of incorporation, bylaws and the other documents required for the nonprofit. While the information above may be sufficient to file the Articles of Incorporation, there will be several additional questions and decisions to prepare your bylaws and ensure that the nonprofit meets the requirements to apply for tax exempt status with the IRS.
Once you create and file the articles of incorporation, you must publish the incorporation and file the initial report. Finally, you will need to obtain an employer identification number (EIN), which your business attorney can also do for you. The EIN is your business’s identification.
When you are ready to create a nonprofit corporation, contact our Georgia business attorneys at Grissom Law, LLC for a consultation.
Disclaimer
This Blog/Web Site is made available for educational purposes only as well as to give you general information and a general understanding of the law, not to provide legal advice. By using this blog site you understand that there is no attorney client relationship between you and Grissom Law, LLC.