How to Start a Nonprofit Business Organization in Las Vegas, NV; What Qualifies as a 501 c 3 & More

A popular choice for Nevada business owners when it comes to decide on how to classify their new business entity is to classify it as a nonprofit organization. However, not all businesses are eligible to be classified as a nonprofit or 501(c)(3). An entity must be formed for literary, educational, religious, charitable, or scientific purposes in order to qualify for a 501(c)(3), or nonprofit status. The popularity of this classification stems from being eligible for federal and state tax exemptions, as most people are aware of. Today, we at Kajioka & Associates, Attorneys at Law would like to elaborate on what to keep in mind if you are wanting to form your business into a nonprofit organization.

What Qualifies as a 501 c 3 Organization?

For starters, the business entity in questions will need to be organized as a corporation, unincorporated association, or as a trust. In the event you are a sole proprietorship, partnership, or limited liability company, you will not qualify to be a nonprofit organization. You will require at least one director for the nonprofit organization to file your nonprofit’s articles of incorporation, presuming you decide to proceed as a corporation. You can generally find on the Secretary of State’s website the Nonprofit Corporation Packet. Within a month of filing the entity’s articles of incorporation, under Nevada state law, you must list all of the directors, officers, and registered agents. Thereafter, the articles of incorporation are then renewed on an annual basis. If you need more information regarding the registered agent services, you can call our offices.

Nonprofit Bylaws Checklist

Your nonprofit corporation’s bylaws will also need to be drafted. Complying with Nevada law, the document must contain all of the procedures and rules your organization will follow to elect the directors, officers, meetings, and any other corporate procedures that Nevada requires. To go over the organization’s details in its entirety, you should want to hold a meeting with the board of directors once you have drafted your bylaws. Accurately record your board’s actions by keeping minutes as well. If you need any assistance with the information regarding corporate bylaws, feel welcome to contact our office.

Nonprofit Tax Exempt Status

You can now begin applying for your federal tax exemption after you have created your nonprofit and have the details of the nonprofit ironed out. A Form 1023 must be completed and filed to the IRS. This long and detailed form will require a lot of information about the nonprofit organization. It can take up to six months once the paperwork is submitted to discover if your application was accepted and your business was granted a tax exemption. A much shorter, simpler, faster, and easily filed online can be done with smaller nonprofit organizations that can file the Form 1023-EZ. Those eligible to use the EZ form are the organizations with annual gross receipts of less than $50,000 and assets of less than $250,000.

Criminal Defense, Personal Injury, Business Attorneys & More in Greater Las Vegas, Nevada

If you need more information or legal assistance getting your business classified as a nonprofit organization in Nevada, contact Kajioka & Associates, Attorneys at Law for your consultation so we can answer your questions and discuss your options.