Nonprofit and 501(c)(3)
Start your nonprofit.
- Bylaws in every package
- 501(c)(3) application $199
Two steps: the state, then the IRS
1. Form the nonprofit corporation
Filed with the state you choose, with bylaws and first board resolutions. Each state has its own nonprofit filing and fee, and we confirm yours before you pay.
2. Apply for 501(c)(3) status
Once the EIN arrives, the application goes to the IRS. Form 1023-EZ is filed online only, through Pay.gov, with the IRS user fee paid there. Larger organizations use the full Form 1023, also filed electronically.
Form 1023-EZ or the full Form 1023?
The IRS's eligibility worksheet decides. A yes to any of its questions means the full form, including these:
- Do you expect gross receipts over $50,000 in any of the next 3 years?
- Have gross receipts been over $50,000 in any of the past 3 years?
- Are your total assets worth more than $250,000?
Filed within 27 months after the end of the month you were formed, an approved Form 1023-EZ generally backdates your exemption to the day you were formed. We prepare Form 1023-EZ for $199, plus the IRS's user fee. A full Form 1023 is quoted for each organization.
Form your nonprofit
The same two packages as every structure, with nonprofit bylaws. Complete also gets your EIN, which the IRS needs before you apply. The 501(c)(3) application is added separately.
Every year after
A 501(c)(3) organization files a yearly return with the IRS. An eligible organization that normally has gross receipts of $50,000 or less files the short Form 990-N e-Postcard instead. A required return or notice missed for 3 years in a row means automatic loss of exemption.
Your state may ask for its own yearly report too. We remind you before each one.
Questions people ask
Is forming a nonprofit the same as getting 501(c)(3) status?
No. You form a nonprofit corporation with a state, then apply to the IRS for recognition of tax exemption under section 501(c)(3). We do both, as two steps.
Do I need an EIN before applying?
Yes. The IRS won't accept Form 1023-EZ until the organization has an EIN, and every organization needs one, whether or not it has employees.
Can we use the shorter Form 1023-EZ?
Only if you can answer no to every question on its eligibility worksheet. Among them: gross receipts over $50,000 in any of the next 3 years or the past 3, and total assets over $250,000. Otherwise it's the full Form 1023.
When does our tax exemption start?
If Form 1023-EZ is filed within 27 months after the end of the month you were formed, and the IRS approves it, exemption generally dates back to your formation. Later, it starts from the date you file.
What does a small nonprofit file every year?
An eligible organization that normally has gross receipts of $50,000 or less files the Form 990-N e-Postcard instead of a full return. Missing a required return or notice for 3 years in a row means automatic loss of exemption.