In Pennsylvania, establishing a nonprofit organization can be a rewarding way to give back to your community and have a beneficial influence. To incorporate a nonprofit, though, can initially appear like a daunting task. The procedures you must follow to properly incorporate your nonprofit organization in Pennsylvania are outlined in this article.
Step 1: Select Your Name and Verify Your Availability You must pick a name for your nonprofit organization that both appropriately reflects its objective and is not currently in use by another organization before incorporating it. On the website of the Pennsylvania Department of State, you can determine whether your selected name is available. By submitting a Name Reservation Request form to the Department of State, you can reserve a name for 120 days after making your choice.
Second step: submit articles of incorporation Articles of incorporation must then be submitted to the Pennsylvania Department of State. These articles ought to specify the name, mission, registered agent, first board of directors, and other essential details of your organization. You can submit your articles either online or by mail with a filing fee of $70.
Obtaining an EIN and registering for state taxes is step three. After the IRS has accepted your articles of incorporation, you must apply for an Employer Identification Number (EIN) from the IRS. This number is used to tax-deductibly identify your nonprofit. Additionally, you must register with the Pennsylvania Department of Revenue for state taxes.
Step 4: Create bylaws and convene the first board meeting After your nonprofit has been incorporated, you should write bylaws that specify the policies and practices for running your business. Additionally, you must call your first board meeting so that you can elect officers, adopt bylaws, and take other crucial actions to launch your organization.
According to Pennsylvanian law, nonprofit entities must have three directors at a minimum. To ensure a range of viewpoints and abilities, organizations are advised to have a broader board of directors.
The IRS recognizes 501(c)(3) nonprofit corporations as being exempt from paying taxes. Your charity must be established and run only for charitable, religious, educational, scientific, or literary purposes in order to be eligible for 501(c)(3) status. On the other hand, nonprofit corporations can be set up for any legal reason and may or may not be tax-exempt.
You must submit Articles of Incorporation, receive an EIN, register for state taxes, develop bylaws, and hold your first board meeting in order to legally establish your nonprofit in Pennsylvania.
You must submit Form 1023 to the IRS and include comprehensive information about the operations, finances, and governance of your nonprofit organization in order to apply for 501(c)(3) status in Pennsylvania. To make sure your application is thorough and accurate, it is advised that you get the help of a knowledgeable attorney or accountant.
Public charities, private foundations, and mutual benefit groups are the three categories of nonprofits.