Filing for status as a nonprofit corporation allows business owners to claim an exemption from federal income taxes if they certify their nonprofit organizations with the Internal Revenue Service. To qualify as a nonprofit organization under Section 501(c)(3) of the Internal Revenue Code, a charitable organization must be one set up for religious purposes, scientific purposes, the prevention of animal cruelty or a similar charitable purpose. In addition to complying with federal tax laws, nonprofit corporations must comply with state laws. In Florida, incorporators of nonprofit corporations must file articles of incorporation and pay a filing fee for registration.
Instructions
1. Download Florida's "Not for Profit Articles of Incorporation." The Florida Division of Corporations within the Department of State offers residents free forms on its website (see Resources).
2. Complete the articles of incorporation. According to Chapter 617.0202 of the Florida Statutes, incorporators of nonprofit corporations must include several items in their articles of incorporation, including the name of the nonprofit corporation. Under Florida law, owners of nonprofit corporations may not use "company" or an abbreviation designating their company as such.
3. List your corporation's business address. You may not use a P.O. Box address as your company's physical office.
4. Complete a "purposed clause" and dissolution provision statement and include it with your articles of incorporation if you are applying for a tax exemption from the IRS. The IRS has special rules requiring nonprofit organizations to use their profits for the benefit of their charitable mission or purpose to claim tax exemption status. Tax-exempt nonprofit corporations cannot use their profits to benefit private shareholders. If you are not seeking an exemption from federal income taxes as a certified nonprofit corporation, you do not have to include the clause and statement. If you are seeking status as a Florida tax-exempt nonprofit corporation, you must specify your company's business purpose, and the Florida Department of State will not accept general purpose statements to qualify for tax-exempt status.
For instance, a general purpose clause stating that your corporation's mission is for "nonprofit purposes" will not qualify for a tax exemption. However, if you state that your nonprofit corporation's mission is "to help abused children in the state of Florida by using corporate profits to help them find immediate shelter," you may qualify for a tax exemption. If you do not obtain status as a Florida tax-exempt nonprofit corporation, you will be responsible for paying state income taxes on your corporate profits.
5. Provide a business address and name of each director serving on the initial board. Include your registered agent's address and name.
6. Provide your name as the incorporator and sign the articles of incorporation.
7. Use the cover letter within the articles of incorporation packet and check off the individual filing fee box.
8. Register your nonprofit corporation with the Florida Division of Consumer Services if you intend to solicit funding from Florida residents.
9. Send one copy and the original articles of incorporation to the division's mailing address (see Resources). Attach your check, made payable to the Florida Department of State, for $35. If you are designating a registered agent, include an additional $35. You may obtain certified copies for an additional fee of up to $52.50, depending on the number of pages.
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