NONPROFIT BUSINESS REPRESENTATION
People interested in humanitarian efforts such as caring, nourishing, developing and enhancing the lives of other people often undertake private initiatives, for public good, focusing on quality of life. An outgrowth of the humanitarian efforts has been the creation and operation of nonprofit corporations. Forming a nonprofit corporation is much like creating a regular corporation, except that nonprofits have to take the extra steps of applying for tax-exempt status with the IRS and their state tax division. Here is what we assist our clients to do when forming a nonprofit corporation:
- Choose an available business name that meets the requirements of Ohio law.
- File formal paperwork, usually called articles of incorporation, and pay the filing fee with the Ohio Secretary of State.
- Obtain an Employer Identification Number for your corporation from the Internal Revenue Service.
- Create corporate bylaws, which set out the operating rules for your nonprofit corporation.
- Appoint the initial directors. (In some states you must choose your initial directors before you file your articles, because you must list their names in the document.)
- Hold the first meeting of the board of directors.
- Obtain licenses and permits that may be required for your corporation.
- Apply for your federal and state tax exemptions.
The last step is usually a surprise to many individuals, because it tends to be the most time consuming. Charities being organized for charitable, religious, scientific, or educational purposes file Form 1023. Other nonprofit organizations, such as college fraternities for example, file Form 1024. The forms are similar and if successful result in federal recognition as a nonprofit corporation. Completing Form 1023 or 1024 requires that the applicant do the following:
- Describe your organization’s specific activities
- Included a conformed copy of the complete organizing instrument? (e.g., Articles of Incorporation, Bylaws, Regulations, etc.)
- Prepare and enclose financial statements with the application for 3 years of economic budget projections, including a detailed breakdown of revenue and expenses (no lump sums).
After your corporation is formed, you have to comply with all of the specialized laws applicable to nonprofit corporations. Phillips Law Firm, Inc. assists in the creation and operation of nonprofit corporations and provides guidance to many nonprofit corporations. When you are ready to start your own nonprofit corporation, whether it be charitable or not, do it right, with the help of an attorney from Phillips Law Firm, Inc. If you want to talk to somebody who understands the laws that are facing you, we can help you.
Your own business can be a very rewarding adventure, and a very confusing process. Starting a business involves planning, making key financial decisions, and completing a series of legal activities. At Phillips Law Firm, Inc., we try to make it simple for our clients. We help you decide what kind of business to create, from the simplicity of a sole proprietorship, to the complexities of corporations with multiple shareholders. We help you wade through the paperwork of financing your business, whether you are using a Small Business Administration loan, a home equity loan, or money from investors that will own a part of your business. We work with partners to draft shareholder agreements up front that will avoid confrontations in the event the partners decide to go their separate ways due to incompatabilities. We register your business with the Secretary of State, help obtain your Employer Identification Number, and explain how to comply with the correct tax and licensing laws. If necessary to protect your brand, we can assist with registering your business name and logo with the United States Patent and Trademark office. We also assist you with obligations related to paying employees such as withholding taxes, the Bureau of Workers’ Compensation, and Unemployment taxes. When you are ready to start your own business, do it right, with the help of an attorney from Phillips Law Firm, Inc.