NONPROFIT REGISTRATION ✅ BUSINESS ✅ SERVICES

Stage 1. Consultation and Selection of Organization Type

What the lawyer does:

Analyzes the goals and activities of the future organization.
Recommends the optimal NPO type (e.g.: 501(c)(3), 501(c)(4), others).
Advises on requirements for board of directors, bylaws, membership, etc.

Stage 2. Preparation and Filing of Incorporation Documents

What the lawyer does:

Prepares Articles of Incorporation according to state requirements.

Includes special language required for future IRS filing (e.g., tax exemption provisions).

Files documents with the Secretary of State (in chosen state).

Cost: $500–$1,000
State fee: $30–$200 (varies by state)

Stage 3. Obtaining EIN (Employer Identification Number)

What the lawyer does:

Completes and files SS-4 form with the IRS.
Obtains EIN for opening a bank account and filing tax forms.

Stage 4. Preparation of Internal Documents

What the lawyer does:

Develops Bylaws (internal governance rules).
Prepares the first minutes of founders/board of directors meeting.
Advises on liability issues, directors' duties, voting procedures, etc.

Stage 5. Filing for Tax-Exempt Status

What the lawyer does:

Files Form 1023 (or short version 1023-EZ for small NPOs).

Prepares required attachments: activity description, financial projections, policies (e.g., conflict of interest).

Communicates with IRS regarding any requests (Request for Additional Information).

Timeline:

Preparation: 1–3 weeks

IRS review: 1–6 months (typically ~90 days)

Cost:

Legal services: $1,500–$3,500

IRS fees:

$275 (for Form 1023-EZ)

$600 (for full Form 1023)

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Registration of a Nonprofit Organization

Legal Status of a Nonprofit Organization

A nonprofit organization in the USA is a legal entity established to carry out activities aimed not at generating profit but at achieving socially beneficial purposes. Such organizations may engage in educational, religious, scientific, cultural, charitable and other projects that serve public interests.

Classification and Forms

In the US, nonprofit organizations can take various forms including charitable organizations, foundations, public charities and private foundations. The most common category includes organizations falling under section 501(c)(3) of the US Tax Code. These organizations may be fully exempt from federal income tax and eligible to receive tax-deductible donations.

Beyond 501(c)(3), other categories exist such as 501(c)(4) (social welfare), 501(c)(6) (business leagues, professional associations) and others. Each category has specific purposes, requirements and tax treatment.

Key Requirements

To register a nonprofit organization, several criteria established by federal law and state regulations must be met. Key requirements include: having bylaws, clearly defined purposes, restrictions on profit distribution among members, and compliance with corporate governance rules.

The organization must have a board of directors overseeing operations and must adhere to principles of transparency, accountability and regular reporting to tax and government authorities.

Tax Benefits and Tax-Exempt Status

A nonprofit organization may obtain federal tax-exempt status by filing an application with the IRS. Upon approval, the organization becomes exempt from income tax and may qualify for additional benefits including exemption from certain state and local taxes, rental discounts, access to grants, and the ability to receive tax-deductible contributions.

To maintain tax-exempt status, the organization must comply with established restrictions including prohibitions on political campaign activities and distribution of income to founders or directors.

Nonprofit organizations play a key role in US social and cultural life. They provide support to vulnerable populations, advance education and science, implement environmental initiatives, and contribute to civil society development.

The nonprofit form is suitable both for large foundations and local initiatives focused on sustainable development and addressing specific social challenges. Registering such an organization provides access to legal and structured operations in accordance with US law.