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.

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…or continue reading the article below to learn more about how to set up a nonprofit in California.

Steps for Setting Up a Nonprofit Organization in California

The process for setting up a not-for-profit corporation is as follows:

  •  File articles of incorporation – Your articles of incorporation should include the name and address of your company, a statement of purpose, and the signatures of the members of the corporation. in California it costs $30 to file articles of incorporation with the court.
  • Apply for an EIN – An employer identification number (EIN) is a tax ID number for all legal entities other than individual persons. Choose “nonprofit” as your entity type on the application form.
  • Draft bylaws for your company.
  • Apply for 501C3 tax-exempt status – 501C3 status is a tax exemption for nonprofit organizations. Your entity may be eligible if you have established it for religious, charitable, scientific, or artistic purposes.
  • Register for the state licenses required to engage in the kind of business for which you have created the company.
  • Open a bank account for your company.

Do Not Spend Money on a Business Lawyer

The process of setting up a business or nonprofit is fairly simple. In fact, you can easily set up a nonprofit corporation without hiring an attorney. You do not need to consult a lawyer unless your corporation becomes involved in a legal dispute. Making a mistake in your forms can, however, be expensive to fix. For example, if you select the wrong entity type on your EIN application form, it is hard to change. Therefore, it is best to do everything correctly and professionally the first time.

You can get the documents you need to set up your nonprofit prepared professionally by hiring a registered legal document assistant. Hiring a professional for this vital stage of getting your nonprofit organization off the ground will pay off quickly. Each nonprofit corporation has different needs, so you only have to pay for the forms that you need. It is a way to avoid stress and unnecessary expenses.

Start Your Nonprofit Off Right with Professionally Prepared Documents

Hiring a registered legal document assistant to prepare your nonprofit corporation forms is a prudent choice. Contact A People’s Choice about having a professional legal document assistant prepare the forms for your charity, church, club, or other types of nonprofit organizations. Call us today at 800-747-2780.

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A People’s Choice can save you hundreds of dollars by preparing your legal documents instead of an expensive attorney!

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