Many people starting a new venture decide to create a nonprofit corporation.
A nonprofit corporation is a type of business entity that is created in order to provide a meaningful service without the intention of making a profit as a result.
This means that any profitable income that is generated from the organization is reinvested into the company so that it can grow.
It’s common for nonprofit organizations to have religious, educational or charitable goals.
Since they are doing work that is seen to benefit citizens, nonprofit organizations are exempt from paying income tax.
If you are interested in starting a nonprofit corporation, it is important that you understand how this can be done efficiently, and what the specific requirements are to qualify for non-profit status.
If you are interested in creating a nonprofit corporation, Bashian P.C. can help guide you through the process, and determine whether or not the corporation you envision will qualify for nonprofit status.
Compose a mission statement and bylaws
As a nonprofit organization, you will need to have a clear mission and purpose. This needs to be articulated in the form of a mission statement and bylaws. Your mission statement should be a high-level overview of what you strive to achieve. Your bylaws should be more in-depth principles for how you will work. These are particularly important because without them you will not be able to achieve tax-exempt status.
Legally incorporate your nonprofit
When you have a clear view of how your organization will work, you will need to file for incorporation. This is a fairly simple step, as it only requires that you name your organization and all those involved.
A key part of operating your nonprofit will rely on the initial funding that you are able to acquire. You may be able to do this by working with partners and investors in the community.
There are many steps to creating a successful nonprofit. Make sure that you understand the law and plan ahead so that you can take advantage of tax exemptions.