California law uses the term “nonprofit corporation” as a company that doesn't distribute profits to its directors or officers the way a corporation does. It may earn income by engaging in business activities, and it may have paid employees. With this in mind, however, it is not a conventional business in which the owners get a share of the profits. Religious organizations, social clubs, and charities are all eligible for nonprofit corporation status in California. You don't need a lawyer to set up a nonprofit corporation, but you should have your documents prepared by a qualified professional. The best choice is to hire a registered legal document assistant to prepare your forms.
Decided to start a California nonprofit for religious, charitable, scientific, literary, or educational purposes? You must take specific steps to make sure you satisfy the requirements for a California nonprofit formation. Once you create a California nonprofit corporation, you can apply for tax-exempt status (501 (c) 3) with the IRS.
There are many steps to start a nonprofit in California. From choosing a corporate name, to filing articles of incorporation, following the right steps will help make sure your nonprofit is properly formed and obtains its federal and state tax exempt status. Read on to learn which steps you should follow to start a nonprofit [...]