A.  Formation Meeting
The first corporate conference is the crucial initial phase in forming a nonprofit corporation.  It is at this assembly that the preliminary board of administrators is put in and officer titles decided.  The minutes (notes) of this meeting should really incorporate a resolution that reveals unanimous affirmation by the initial board to establish the corporation and pursue both of those incorporation and federal tax exemption.  The intent of the group should be articulated in composing, as very well.
B.  Federal Employer Identification Quantity (FEIN)
Acquiring an FEIN is an critical early phase.  An FEIN, or Federal Employer Identification Number, is a numeric identifier for companies.  A lot like a Social Stability range, it is a nine-digit variety assigned by the Inner Earnings Assistance that gets to be completely associated with your corporation.  It is essential of all organizations, both of those for-gain and nonprofit, and its acquisition should be among the the first issues accomplished by new startups.
Form Title:  Application for Employer Identification Variety
Kind Range:  SS-4
Filing Payment:  $
Basis Group Provider:  Indeed (a component of SureStart&trade)
C.  Incorporation in Georgia
Incorporating a nonprofit involves the filing of a formation doc, generally referred to as Content articles of Incorporation, until in any other case indicated underneath.  In Georgia, this document is filed with the Point out&rsquos Businesses Division of the Secretary of Point out&rsquos business office.
Kind Identify: Articles of Incorporation
Submitting Rate:  $a hundred and ten
FOR More Information:  https://sos.ga.gov/corporations  &ndash remember to notice: all organizations need to publish an intent to integrate and deliver a $forty publication rate immediately to the publishing newspaper no later on than the upcoming small business day soon after submitting articles of incorporation with the Secretary of State.
Foundation Team Services:  Certainly (a component of SureStart&trade)
Note:  Even though the state of Georgia provides a template (boilerplate) doc for incorporation, be mindful that the Ga template does not meet Inner Earnings Services prerequisites for acquiring 501(c)(3) standing.  As component of our SureStart nonprofit development assistance, all Articles of Incorporation well prepared by Foundation Team are drafted to meet stringent IRS specifications.
Bylaws are the rules made use of by the officers and directors to govern the group.  Georgia does not demand a duplicate of the bylaws to be filed with the point out.  Irrespective of submitting requirement, their generation is a part of the development process and is needed by condition regulation.  It is critical that the bylaws be drafted by another person with understanding of equally condition and federal law governing the procedure of a tax-exempt business.
Note:  A duplicate of the bylaws is essential by the IRS when seeking tax-exemption as a 501(c)(3) firm, unless of course applicant is applying Type 1023-EZ.
Foundation Team Service:  Sure (a part of SureStart&trade)
E.  FEDERAL TAX EXEMPTION (501(c)(3) Status)
After a nonprofit corporation has been formed, the up coming step is to look for tax-exemption from the Inner Revenue Service, a lot more typically referred to as having 501(c) position. The IRS acknowledges statuses from 501(c)(two) by 501(c)(27). The  mind-boggling greater part of tax-exempt businesses are acknowledged as 501(c)(three) companies for their charitable reasons.
To acquire recognition as a 501(c)(three), tax-exempt entity, Form 1023 should be filed with the Inside Revenue Company.  Form 1023 is a extensive appear at an firm&rsquos construction and plans.  Given the number of added schedules, attachments, and reveals that could be necessary in addition to the application by itself, most Variety 1023 filings array involving 50-a hundred pages of facts.
In July of 2014, the IRS introduced Type 1023-EZ.  This abbreviated model of the application for exemption is an on the web-only form, available only to qualified, smaller businesses.  Variety 1023-EZ is controversial in that most states oppose its use and the foremost nonprofit market and advocacy teams fear it will negatively impact grant funding alternatives for modest charities that use it.
Kind Identify:  Software for Recognition of Exemption Below Segment 501(c)(3) of the Inside Earnings Code
Variety Selection:  1023 (or 1023-EZ)
Submitting Cost:  $600 ($275 for Kind 1023-EZ)
FOR Added Info:
Basis Team Assistance:  Indeed (a ingredient of SureStart&trade)
Be aware:  For organizations in search of federal tax-exemption less than a further 501(c) section, Type 1024, Application for Recognition of Exemption Under Segment 501(a), ought to be filed.
Must the IRS grant tax-exempt position, the applicant will be issued a Letter of Willpower to that result.
F.  Point out Money Tax-Exemption (Corporate Money Tax)
Most states identify the federal Letter of Perseverance and do not call for any additional state filings in buy to be revenue tax exempt for condition applications.  A handful of states, however, have their possess recognition demands.
Ga Calls for Filing: Yes
Variety Title:  IRS Willpower Letter
Type Amount:  N/A
Filing Rate:  N/A
FOR Supplemental Details:  https://dor.ga.gov
Basis Team Support:  Yes, in particular company offers
Be aware:  Company tax-exemption does NOT exempt you from Unrelated Business Earnings tax (UBIT).  For further data, see https://www.501c3.org/tag/unrelated-business-revenue .
G.  Charitable Solicitations (Fundraising) Registration
Most states need a nonprofit firm to register with its Department of Charitable Solicitations, normally administered by the Attorney Basic&rsquos business. Some states administer the effort via the Secretary of Condition, and some others are a mix (bifurcated). A vital point is that nonprofits may perhaps have a registration prerequisite beyond their point out of incorporation if the corporation solicits donations in people other states.
In addition to original registration, most states have to have charities to renew their registration on an yearly basis.  Failure to retain compliance with fundraising registration may possibly result in punitive fines and reduction of potential to operate in that condition.
Form Title:  Ga Charitable Solicitations Act Charitable Organization Registration
Kind Quantity:  C-a hundred
Filing Charge:  $35
AUDIT Specifications:  Audits are essential for companies acquiring extra than $one million in gross income in either of its two preceding fiscal years financials will have to be reviewed by an impartial accredited public accountant if gross revenues are better than $five hundred,000 but significantly less than $1 million in both of its two previous fiscal yrs.
FOR More Information and facts:  https://sos.ga.gov, https://sos.ga.gov/admin/information
Foundation Group Assistance:  Of course, both as a ingredient of SureStart&trade and a-la-carte
H.  Revenue Tax Exemption
Several nonprofits can gain from staying exempt from product sales tax on purchases of companies, products, and supplies.  Some of the states that allow for for profits tax exemption involve that you have now gained your 501(c)(3) status from the IRS.  Many others do not.
Georgia Enables:  No wide sales tax exemption for nonprofits
Kind Name:  N/A
Type Quantity:  N/A
Submitting Cost:  N/A
FOR More Info:  https://dor.georgia.gov/
Foundation Group Support:  No
I.  County of Other Community Registrations
There are three,a hundred and forty counties in the US.  When a lot of do not call for company licenses or other filings by nonprofits, some do.  We extremely suggest that all corporations make contact with their County Clerk&rsquos place of work to inquire as to any needed filings.  Lots of neighborhood, metropolis, and county agencies also require a business license registration.  Please examine with your regional businesses to ensure you have satisfied all needs to work.
Basis Group Support:  No
Ongoing Nonprofit Compliance
When a nonprofit group has been developed and has obtained tax-exemption and other important skills, these statuses should be taken care of.  Beneath is a list of the ongoing compliance submitting requirements for a nonprofit, tax-exempt business in Ga.
A.  Corporate Annual Report
Your nonprofit company need to file a corporate report on a yearly basis with the condition in purchase to stay in great standing.  This report retains the state up to date about the organization&rsquos present officers, administrators, and other related information and facts.
Basis Group Services:  No
B.  Federal IRS Kind 990
IRS Kind 990 is an once-a-year data return that should be filed by all 501(c) corporations.  Variety 990 is similar to a company tax return, but with various important distinctions. It is an once-a-year report of income and price exercise, together with data distinct to nonprofits: the prior calendar year&rsquos activities and accomplishments, important detail about composition and functions and data about greater donors. No taxes are because of on internet earnings from tax-exempt activities.
There are five unique variations of Type 990: Kind 990, Form 990EZ, Form 990-N, Sort 990PF, and Type 990-T. Which just one is required of any specific business relies upon upon a amount of things, the most substantial of which is the amount of once-a-year, gross income acquired by the corporation. In tax calendar year 2008, the IRS considerably improved the volume of data that is required to be reported by businesses. 2009 included even additional to all those alterations. It is really sensible that nonprofit companies find the guidance of a certified skilled to guide with the preparation of Kind 990.
Be aware:  Some variation of Variety 990 is demanded of all 501(c) companies (besides church buildings), irrespective of gross revenue or past submitting necessities . . . even if an organization has not yet been given formal 501(c) determination.  Considerable penalties, and even revocation of tax-exempt position, can consequence from failure to file a timely and accurate return.
Form Name:  Return of Firm Exempt from Earnings Tax
Sort Variety:  Kind 990, 990EZ, 990-N, 990PF, 990-T
Submitting Price:  $
Because of Date:  fifteenth day of the fifth thirty day period adhering to the end of the fiscal 12 months (extendable for 6 increase&rsquol months)
LATE Filing PENALTIES:  $20 per working day, up to the lesser of $10,000, or five% of the business&rsquos gross earnings.  If gross earnings exceeds $one,000,000, the penalty improves to $one hundred for each day, up to $50,000.
FOR Additional Details: https://www.irs.gov/types-pubs/about-type-990
Basis Team Services:  Yes, each as a element of Assurance&trade, and a-la-carte
Be aware:  There are no economical penalties associated with the late submitting of Type 990-N.  The IRS will, even so, revoke the tax-exempt status for companies that are unsuccessful to file any variation of the Kind 990 for three consecutive decades.  Other than a single formal see, the IRS will NOT send out annual reminders that your Form 990 is due.
C.  Point out Exempt Business Details Reporting
Most states recognize the IRS Type 990 as acceptable for state tax exemption reporting.  Several states have to have no reporting at all, based upon the variety of business.
Ga Needs Filing:  Yes
Copy OF IRS Kind 990 Appropriate:  Certainly
Kind Identify:  N/A
Variety Amount:  N/A
Thanks Date:  four½ months just after fiscal yr finish
Submitting Payment:  N/A
FOR Further Information and facts:  https://dor.ga.gov/
Basis Team Assistance:  No
D.  Charitable Solicitations Renewal
When an corporation has registered with the point out Division of Charities, it may well have to renew that registration annually.  If required, the threshold to report normally relies upon upon the kind of organization and the total of gross profits.
Georgia Requires RENEWAL:  Indeed
Variety Identify:  Charitable Business Registration Renewal See
Type Number:  N/A
Thanks Day:  24 months following powerful day &ndash software opens 90 days before renewal
Submitting Cost:  $20
AUDIT Demands:  Audits are expected for corporations that received more than $1 million in gross revenue in its previous 2 fiscal many years (licensed fiscal assertion organized by independent licensed public accountant) financials must be reviewed by an independent qualified community accountant if gross revenues are greater than $five hundred,000 but significantly less than $one million in two preceding fiscal many years.
FOR Additional Information:  https://sos.ga.gov, https://sos.ga.gov/index.php/charities
Basis Group Company:  Of course, as a ingredient of Assurance&trade, and a-la-carte
E.  Other Reporting Requirements
The regulatory planet we inhabit is in a frequent condition of transform. It is critical that all enterprises keep conscious and knowledgeable, which include (and specifically) nonprofit, tax-exempt organizations. Know what your point out and the federal governing administration call for and keep present. It is a great deal less complicated, and considerably a lot less high priced, to do factors accurately the 1st time.
Critical Observe: Kind alterations happen periodically to carry out new specifications. Forms could be eradicated or revised, or new varieties could be created. Ahead of publishing sorts for submitting, please be absolutely sure that you have the most recent version of varieties.
Back links can adjust regularly. If you have a challenge with a connection, copy and paste the connection in your navigation bar.
Companies &ndash If the nonprofit group has or may well have staff and/or speakers/friends/impartial contractors, there could be more registration and reporting requirements at the federal and point out level.  A prevalent oversight for businesses is compensating people today as unbiased contractors when the partnership necessitates paying out them as employees. You can discover information at the two the federal and state degree to explain these associations. Down below you will come across beneficial IRS back links.  For condition specifications, verify with the Section of Profits. This is the most normally used title for that department your point out could detect it by a unique name. At this division, you will locate topical information about state unemployment insurance (SUTA), condition profits tax (SIT), new employ reporting requirements, and employees payment.
one. Pick out the initial administrators for your nonprofit company
In Ga, a nonprofit company will have to have at least just one director on its board.
two. Select a title for your Ga nonprofit company
The title of your nonprofit company will have to be distinguishable from the names of other corporations by now on file with the Ga Secretary of Condition Corporations Division. Names might be checked for availability by looking the Organizations Division small business name databases. You may reserve a title for thirty times on line at the Organizations Division website or by mail by submitting a Name Reservation Ask for. There is a $10 charge.
In Ga, your nonprofit corporation title will have to incorporate the term "corporation," "company," "incorporation," "limited," or an abbreviation.
3. Appoint a Registered Agent
Every single Georgia nonprofit corporation need to have an agent for company of approach in the point out. This is an unique or corporation that agrees to settle for authorized papers on the company's behalf if it is sued.
The agent will have to have a actual physical road tackle in Georgia, not a post place of work box. Smaller nonprofit firms usually identify a director or officer to provide as the first agent. However, if your corporation is physically positioned in Ga, it may possibly act as its have registered agent. The agent need to consent to the appointment.
4. Prepare and file your nonprofit articles of incorporation
To legally establish your corporation, you must produce and file nonprofit posts of incorporation with the Georgia Secretary of Condition Firms Division. Ga needs that the subsequent information be integrated in a nonprofit company's articles:
- the company's title
- a statement that the corporation "is arranged pursuant to the Georgia Nonprofit Corporation Code"
- the name and avenue handle of the corporation's registered agent
- the title and tackle of just about every incorporator
- no matter if the company will or will not have customers, and
- the mailing tackle of the corporation's principal workplace.
To receive 501(c)(three) tax-exempt standing from the IRS, your corporation must have specified specific language in its content articles, like:
- a assertion of purpose that satisfies IRS necessities
- statements that your nonprofit will not interact in activities unrelated to its exempt applications or in prohibited political or legislative action, and
- a dissolution clause dedicating the corporation's assets to a further 501(c)(3) firm or to the government upon dissolution.
The Ga Secretary of Condition does not have a fillable Article content of Incorporation type to use. A comprehensive information well prepared by the Companies Division, titled Filing Procedures, points out how to draft your article content yourself, which include a sample kind. Nonetheless, the sample variety does not contain the three clauses expected by the IRS. Make confident you incorporate the necessary tax-exempt language in the articles or blog posts you develop. You can locate sample language to use accepted by the IRS in the Instructions for IRS Variety 1023-EZ, (see Element II).
For additional info on IRS necessities for tax exemption, which include sample language, seek advice from How to Type a Nonprofit Company, by Anthony Mancuso (Nolo).
If you are submitting by postal mail, you ought to draft your possess content articles on eight.five" x 11" paper. You need to include a Transmittal Details Type if you file your articles by mail. You may well file on the internet by uploading your articles or blog posts to the Secretary of Condition's site.
There is a $a hundred fee for on the internet filings, a $one hundred ten for filings by postal mail.
five. Get ready bylaws for your Georgia nonprofit corporation
You'll will need to get ready bylaws that comply with Ga regulation and include the guidelines and techniques your corporation will comply with for holding meetings, electing officers and directors, and having treatment of other company formalities needed in Georgia.
For much more info, see Nolo's report Nonprofit Bylaws, or, for help producing your bylaws, see Nolo's e book How to Sort a Nonprofit Corporation, by Anthony Mancuso (Nolo). Your bylaws do not require to be submitted with the Ga Secretary of Condition — they are your internal working manual.
6. Keep a meeting of your board of administrators
Your very first board conference is generally referred to as the organizational conference of the board. The board need to consider this sort of actions as:
- approving the bylaws
- appointing officers
- environment an accounting period and tax calendar year, and
- approving first transactions of the corporation, such as the opening of a company lender account.
Immediately after the conference is concluded, minutes of the assembly ought to be made. Set up a company documents binder to keep the company's posts, bylaws, consent varieties, minutes, and other crucial paperwork.
For more info, as very well as minutes kinds, consent forms, and other resolutions, see Nonprofit Conferences, Minutes & Data, by Anthony Mancuso (Nolo)
seven. Obtain an EIN
Your nonprofit company should get hold of a federal employer identification amount (EIN). You may possibly obtain an EIN by completing an on the web application on the IRS web-site. There is no filing fee.
8. Get hold of enterprise licenses
Based on the sort of activities your nonprofit intends to carry on and where by it is positioned, it may perhaps need to have to get a neighborhood and/or state organization license or permit. For local licenses, examine with the metropolis in which the nonprofit's major business office is positioned (or county if it is in an unincorporated spot). For condition licenses, look at the Ga Secretary of State's First Cease Business Guide.
nine. File your yearly registration
Within just 90 times of incorporation, every single Georgia corporation must file an original annual registration kind that lists 3 principal officers with the Secretary of State. Businesses that kind in between October 2 and December 31 have to file the initial annual registration concerning January one and April one of the up coming calendar calendar year. The registration variety can be filed on line. An annual registration must be filed by April one every single calendar year right after the original year. There is a $thirty submitting price for nonprofit corporations. site here that does not post its once-a-year registration is subject to administrative dissolution. There is a $250 fee to reinstate an administratively dissolved corporation.
Receive Federal and State Tax Exemptions
Now that you have designed your nonprofit company, you can attain your federal and Colorado point out tax exemptions. In this article are the added measures you should choose to attain your tax-exempt standing.
10. File your Form 1023 federal tax exemption software
To attain federal tax-exempt status from the IRS, you will want to total and file IRS Form 1023, Application for Recognition of Exemption Less than Part 501(c)(3) of the Internal Earnings Code. This extended and in-depth kind asks for lots of data about your group, which includes its historical past, finances, organizational construction, governance policies, operations, routines, and extra. For line-by-line guidelines on how to complete the Kind 1023, see How to Type a Nonprofit Corporation, by Anthony Mancuso (Nolo).
Scaled-down nonprofits may be suitable to file Form 1023-EZ, Streamlined Software for Recognition of Exemption beneath Section 501(c)(3) of the Internal Revenue Code. This is a considerably less difficult, shorter form that is filed on-line. Only scaled-down nonprofits–those with projected yearly gross receipts of less than $fifty,000 and complete assets of considerably less than $250,000–are eligible to use the streamlined 1023-EZ software.
See the IRS web page for extra info on the Variety 1023 and Type 1023-EZ filing specifications.
11. Get your Georgia condition tax exemption
On receipt of your 501(c) dedication letter from the IRS, your group is routinely exempt from Ga company tax. You have to file an application with the Georgia Department of Revenue to receive an exemption from condition revenue taxes. Get in touch with regional taxing authorities for exemptions from nearby profits and house taxes. For much more information, refer to the nonprofit company FAQs prepared by the Section of Profits.
twelve. Other condition reporting and registration needs
Based on your actions and the sizing of your firm, you may perhaps have to have to register with the Securities Division of the Workplace of Secretary of State right before soliciting or accepting contributions in the condition. For additional details about fundraising registration requirements, see Nonprofit Fundraising Registration Digital Tutorial, by Ronald J. Barrett and Stephen Fishman (Nolo).