In most jurisdictions, corporations are usually classified based on whether they are meant to generate profit or they are nonprofit corporations. They are set up based on this classification. States such as Florida classify nonprofit corporations as 501C3. This simply gives guidelines for setting up such nonprofit corporations.
The United States anchors the process of setting up corporations on the internal revenue code. 501C3 is one of the subsections in such codes. It mainly focusses on the laws that govern taxes for nonprofit corporations. Based on this subsection, nonprofit corporations in the US are exempted from paying taxes. There are however conditions attached to this nonpayment of taxes. One of them is that the activities of the corporation must be helpful to the ecosystem such as being educative, religious, scientific among others.
So, how do you establish a 501C3 in a state like 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 statement must capture the main intention of the nonprofit corporation.
Registration of the corporation can be done after having the directors and the mission statement. 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. At this point, you can hold meetings with the board of directors and create a bookkeeping procedure for records.
A registration number for the corporation can be obtained subject to following the above procedures to the latter. With this number in place, you can then register your corporation with the department of revenue in the state, say Florida. Similarly, proceed with registration with the department of consumer services. The final registration is with the IRS at the particular state. This will enable you to hire staff for your nonprofit corporation. The corporation can then start operations.
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. The first one is the physical address. Here we are talking about the location and the address of the street. Then give the specific purpose of the corporation. Thirdly, state how you will elect directors for the corporation. It is also at this point that you should state how elections for the board of directors of the nonprofit corporation will be conducted. The measures above are not punitive but will aid in ensuring that the nonprofit organization operates with transparency and would be able to be accountable to the state on all its operations.