On the surface, forming a nonprofit organization may appear to be identical to starting a small business. However, as you learn more about the process, you will find that there are several unique steps you need to take.
Rather than make a mistake upfront that can cost you time and money in the future, it’s important to learn more about the many legal issues surrounding the formation of a nonprofit organization. From day one, it’s essential that you comply with both state and federal regulations.
Some of the many details to think about when forming a nonprofit organization include:
— The legal process for getting started.
— Naming a board of directors or board of trustees
— Filling for 501(c)(3) tax-exempt status
Along with the above, you’ll need to understand how to govern your nonprofit organization on a month to month and year to year basis.
At our law firm, we know that forming a nonprofit organization is more difficult than it appears. Fortunately, with our assistance, we’ve been able to help many people get their nonprofit up and running.
You should never assume that forming a nonprofit organization is as simple as it sounds. It only takes one mistake early on to cost you time and money at some point in the future. For example, if you don’t take the right steps in gaining 501(c)(3) tax-exempt status, you may have to pay taxes in the future.
Forming a nonprofit organization is a great way to give back and help others in need. However, you need to make sure you take all the right steps during the early days.