Steps,
Forms and Information on Starting
A Nonprofit Corporation in California
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| Recommendations
before you apply for tax-exempt status–
a) Read Get
Ready, Get Set (2.5M .pdf). This resource
explores information you need to know prior to starting a
nonprofit. Also available in Spanish En
Sus Marcas, Prepárense (2.5M .pdf).
b) Develop a business plan that includes a minimum of your
proposed organization’s mission, organizational chart,
proposed services, needs assessment, implementation strategy,
and resources to accomplish your mission. |
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| 1. |
SELECT A NAME |
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SECURE AN EMPLOYEE IDENTIFICATION
NUMBER |
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SECURE THE NONPROFIT INCORPORATION
PACKET |
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FILE ARTICLES OF INCORPORATION |
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DEVELOP BYLAWS |
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PREPARE CALIFORNIA APPLICATION
FOR TAX EXEMPTION FT B 3500 |
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SUBMIT APPLICATION FOR FEDERAL
TAX EXEMPTION PACKAGE 1023 |
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MAIL A COPY OF THE IRS TAX
DETERMINATION LETTER TO THE FRANCHISE TAX BOARD IN SACRAMENTO |
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SUGGESTIONS |
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ADDITIONAL
RESOURCES |
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SELECT A NAME-
Although it is not required, it is advisable to reserve a name
in advance. This way you are not delayed in securing your tax-exempt
status because another corporation has already selected the
name you chose. |
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Choice A
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The San Diego office of the California Secretary
of State closed in April 2010 due to budgetery constraints. Visit: http://www.sos.ca.gov/business/be/name-availability.htm for information and to download a Name Reservation Request Form. |
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California Secretary of State
1500 11th Street
Sacramento, CA 95814
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Choice B |
Visit the business section of the California State
web site www.sos.ca.gov,
go to the business section and download/print Name
Availability Inquiry Letter and Name Reservation
Request Form.
A preliminary check of the availability of a corporation name
can be made by mailing the Name Availability Inquiry
Letter to: |
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California Secretary of State
Name Availability Unit
1500 11th Street, 3rd Floor
Sacramento, CA 95814 |
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| 2. |
SECURE AN EMPLOYEE
IDENTIFICATION NUMBER–
The best method for securing an Employee Identification Number
(EIN) is to go to the Internal Revenue Service web site www.irs.gov
and print Form SS-4 along with instructions.
To apply use the fill-in form available on the IRS web site
www.irs.gov.
Complete the form and call (866) 816-2065 or fax the completed
form to (215) 526-3990. There is no charge for filing this form.
If you do not have Internet access, you may order a copy of
Form SS-4 by calling 1-800-TAX-FORM or by visiting
the San Diego IRS office: |
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Internal Revenue Service
880 Front Street, First Floor
San Diego, CA 92101
Hours: Monday – Friday, 8am to 4:30pm |
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Order the following while you are on the IRS web
site or at the San Diego IRS office – you will need them
later, in addition to the Form SS-4: |
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Form 8718 |
User Fee for Exempt Organization
Determination Letter Request |
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Package 1023 |
Application for Recognition of Exemption, which includes official
instructions |
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Publication 557 |
Information on being a nonprofit corporation |
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SECURE THE NONPROFIT
INCORPORATION PACKET- By visiting the San Diego
office of the California Secretary of State (see
# 1A).
The Nonprofit Incorporation Packet includes:
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a) samples of the Articles of Incorporation,
b) fee schedule and process for filing Articles of Incorporation,
c) form to reserve name, and
d) Form FTB 3500, California tax exemption
application.
DO NOT REQUEST SEPARATELY |
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FILE ARTICLES OF
INCORPORATION – If you do not secure sample
Articles of Incorporation plus instructions from the San Diego
Secretary of State's office, you can download them at the California's
Business Portal under
Forms.
Submit a check for $30, payable to the Secretary of State, along
with the original and four copies of your proposed Articles
of Incorporation to: |
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California Secretary of State
Legal Review Unit
1500 11th Street, Room 390
Sacramento, CA 95814
(916) 653-2318 |
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or, The Articles of Incorporation may
be hand delivered to the Secretary of State’s –San
Diego office (see #1A).
In addition to the $30 filing fee, a $15 special handling fee
must be remitted by separate check for this counter service. |
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DEVELOP BYLAWS (rules
for managing your nonprofit)– Sample bylaws
are available in the Nonprofit Management Solutions Resource
Library. |
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PREPARE CALIFORNIA
APPLICATION FOR TAX EXEMPTION FT B 3500- If
you didn’t secure the form
FTB 3500
in the Nonprofit Incorporation Packet (see
#3) you may request a form from: |
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Franchise Tax Board
353 Mission Center Road, Room 314
San Diego, CA 92108
(800) 852-5711
Hours: Monday – Friday, 8 am to 5 pm
or online at: www.ftb.ca.gov/forms |
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Mail completed application for tax exemption FTB
3500 along with requested attachments and a $25 check,
payable to the Franchise Tax Board to: |
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Franchise Tax Board
P.O. Box 942857
Sacramento, CA 94257-4041 |
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SUBMIT APPLICATION
FOR FEDERAL TAX EXEMPTION PACKAGE 1023- |
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Items to submit: |
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a) Completed Package 1023 along
with requested attachments
b) Form 8718
c) Check for $750, payable to the Internal Revenue Service |
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MAIL TO: |
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Internal Revenue Service
P.O. Box 192
Covington, KY 41012-0192 |
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MAIL A COPY OF THE
IRS TAX DETERMINATION LETTER TO THE FRANCHISE TAX BOARD IN SACRAMENTO
(see
#6) |
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| SUGGESTIONS |
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Follow instructions |
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Make copies |
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Make sure your IRS Tax Determination Letter is
in a secure place (the IRS does not provide copies) |
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Contact the city or county clerk where the principal
place of business is located for information regarding business
licenses, fictitious business names, zoning requirements, etc. |
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If you have employees, register with |
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California Development Department
3110 Camino Del Rio South, Suite 100
San Diego, CA 92108 |
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| ADDITONAL RESOURCES |
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www.nonprofit.about.com |
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Nonprofit Charitable Organizations |
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www.fdncenter.org |
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Foundation Center
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www.ftb.ca.gov |
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Resource: Starting a Business
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www.form1023help.com |
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How to complete application for federal tax exemption
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How to Form a California Nonprofit
Corporation |
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Available for purchase or viewing in the NMS Resource
Library
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