Many countries and states classify corporations based on being profit-making or nonprofit corporations. The classification guides the processes involved in setting them up. When it comes to nonprofit corporations, they are classified as 501C3 in states such as Florida. 501C3 guides the setting up of the nonprofit corporation.
Setting up corporations in the United States is anchored on the internal revenue code. 501C3 happens to be a subsection under this code. This subsection is about laws governing nonprofit corporations. This subsection allows nonprofit corporations in America to not pay taxes. However, the corporation must fulfil certain conditions. The corporation activities must be related to charity, religion, education, public safety, science among other helpful ventures to the ecosystem.
So, how does one start a 501C3 in states such as Florida? It is mandatory that your corporation has at least three members sitting in the board of directors. The directors must also be at least eighteen years of age. 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.
With the mission statement in place, the corporation can then be registered. For the corporation to be registered, there must be a filed article of incorporatin. This should have been filed with the secretary of state, division of corporations. Having done that, create bylaws for the corporation. 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. After this, register with the department of revenue. Similarly, proceed with registration with 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. Operations of the corporation can then commence.
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. First 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, describe the formula to be used when electing directors for the nonprofit corporation. You must also describe how you will hold elections for the board of directors and all the measures to be put in place for such elections to be smooth and produce fair results. All these measures are meant to achieve transparency and accountability.