Nonprofit Corporation Frequently Asked Questions

A nonprofit corporation is created to perform religious, education, charity, literary or scientific work. Since the work performed by the nonprofit is a benefit to the common public, nonprofits are eligible to receive tax-exempt status, meaning the nonprofit does not pay state or federal taxes income taxes on any profits made. Nonprofits are required to file with the IRS to obtain a tax exemption status which is a different process than registering the nonprofit with the state.​

Regardless of the type of business structure you select, there are other considerations you’ll need to make while filing:

1. Do you need an Employer Identification Number (EIN)?
2. Who will serve as your company’s registered Agent?

An EIN is a 9 digit number assigned by the IRS and is required to be able to identify the tax account of employers and others who do not have employees. Although nonprofit organizations are not formed to produce a profit, nonprofits are still required to obtain an EIN. The EIN is a requirement to establish a bank account for your business and also required when applying for tax-exempt status. Applying for an EIN is a different process than registering your business with the state. Our partner’s services include the option to apply for an EIN and communicate with the IRS  on your company’s behalf.

Each state requires a business that is formed within the state, including nonprofits, to elect a registered agent (RA). An RA is the person or business entity that will accept service of process (lawsuit) notices, correspondence from the Secretary of State and other notifications – such as tax forms. You’ll need our partners to serve as your RA if you do not have a physical address (i.e. a PO Box), are not available every day during normal business hours (away on vacations, business trips, etc.) or simply want to avoid falling out of “good standing” with the State and risk penalties such as fines or revocations.

Your corporation must file an Annual Report with the state’s Division of Corporations each year to maintain an active status. The corporation’s first annual report is typically due between January 1^st and May 1^st of the calendar year following the year the corporation is formed. Our partner’s can make sure your business files its Annual Report each year avoiding an inactive status. They can also perform other maintenance such as reinstatements, dissolutions, and registered agent changes.

You will need to submit a federal 501(c)(3) tax exemption application to the IRS and include your file articles of incorporation and EIN. Depending on the size of your nonprofit corporation, you will submit IRS Package 2013, Application for Recognition of Exemption or Form 1023-EX, Streamlined Application for Recognition of Exemption Under Section 501(c)(3) of the Internal Revenue Code. Fileyourbusiness.com will assist you with filing your articles of incorporation and obtaining an EIN but we do not currently assist with filing tax exemption applications.

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