In most jurisdictions, corporations are usually classified based on whether they are meant to generate profit or they are nonprofit corporations. The processes involved in setting up one is based on whether it is geared on profit-making or not. States such as Florida classify nonprofit corporations as 501C3. This gives guidelines on starting them as well as the rules and regulations to be followed.
Setting up corporations in the United States is anchored on the internal revenue code. One of these codes is the subsection 501C3. It mainly focusses on the laws that govern taxes for nonprofit corporations. Nonprofit corporations in the United States are exempted from paying taxes based on this subsection. There are however conditions attached to this nonpayment of taxes. Helpful ventures related to education, religion, science among others can warrant such exemptions.
So, what do you require to start a 501C3 in American states such as Florida? First of all, the corporation must have a minimum of three members in the board of directors. The minimum age of such directors is required to be eighteen. Then you must name the corporation appropriately. This is followed by writing a mission statement for the corporation. The statement must capture the main intention of the nonprofit corporation.
Registration of the corporation can be done after having the directors and the mission statement. To have your corporation registered, you need to have a filed article of incorporation. This should have been filed with the secretary of state, division of corporations. Having done that, create bylaws for the corporation. At this point, you can hold meetings with the board of directors and create a bookkeeping procedure for records.
An employer registration number can be obtained if you have fulfilled all the procedures above. With this number in place, you can then register your corporation with the department of revenue in the state, say Florida. You should also seek registration at the department of consumer services. The final registration is with the IRS at the particular state. Registration with the IRS means that you can hire staff. Having staff means that the corporation can start operating.
There is also other biodata information that must be availed to the state and the organs of registration for your corporation to be registered and allowed to operate. The first one is the physical address. You can give the street and the general location. After that, state the exact purpose for the corporation being set up. Thirdly, state how you will 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.