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. In States such as Florida, 501C3 is used to classify nonprofit corporations. This simply gives guidelines for setting up such nonprofit corporations.
The internal revenue code is the basis for setting up corporations in the United States. One of these codes is the subsection 501C3. 501C3 governs the establishment of nonprofit corporations. Nonprofit corporations in the United States are exempted from paying taxes based on this subsection. There are however conditions attached to this nonpayment of taxes. The corporation activities must be related to charity, religion, education, public safety, science among other helpful ventures to the ecosystem.
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. This is followed by writing a mission statement for the corporation. The main reason for setting up the corporation must be captured in the mission statement.
With the mission statement in place, the corporation can then be registered. A filed article of incorporation is mandatory for registration of the corporation. It should have been filed at the division of corporations in the office of the secretary of state. Having done that, create bylaws for the corporation. Hold meetings with the board of directors and keep records.
An employer registration number can be obtained if you have fulfilled all the procedures above. After this, register with the department of revenue. Similarly, proceed with registration with the department of consumer services. Finally, you are required to register with the IRS in the state. Hiring of staff can happen after registration with IRS. Operations of the corporation can then commence.
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. First of all, the physical address of the corporation must be availed for accountability. You can give the street and the general location. After that, state the exact purpose for the corporation being set up. 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. With such measures, the state will be sure that the nonprofit corporation will operate based on transparency and accountability.