Forming a Non-Profit Corporation

A non-profit organization is one that operates on a charitable basis, either to provide a public good or service, or to supplement the support of a public good or service. Examples of non-profits include the American Cancer Society, Center for Child Protection, and Austin Humane Society. These organizations can also function as corporations and as well as receive a 501(c)(3) tax exemption.

A Similar Process

The process for forming a non-profit corporation is very similar to that of a for-profit one, except with the extra steps of applying to tax-exempt status with the Internal Revenue Service. Basically, it is all the paperwork of a regular corporation and then some. After choosing an available business name that meets Texas state law requirements, you must file articles of organization which are accompanied by a small fee that is typically under $100. Though the articles are not difficult forms to fill out, the language must be specific so as to ensure you will be granted 501(c) status. The extra help of a business attorney would be useful.

The Rules

After applying to federal and state tax exemptions, you will need to create the non-profit’s bylaws which will determine the operating rules for your nonprofit corporation. Like a for profit corporation you will be required to appoint a board of directors as well as obtain any licenses and permits that may be required.

Speak with the Austin Business Lawyers

If you are considering forming a non-profit corporation you may want the additional guidance and support of a law firm that knows business. Contact the Austin business lawyers of Slater, Kennon, & Jameson, LLC at 512.472.2431 to speak with an attorney today.