How to Start a Nonprofit in Tennessee?

What is a Nonprofit Organization?

A nonprofit organization is a type of organization that is formed to serve a specific purpose or mission, and it is not intended to make a profit. Nonprofits are typically formed to provide a service or benefit to the community, such as education, healthcare, or social services.

How to Start a Nonprofit in Tennessee?

Starting a nonprofit organization in Tennessee can be a daunting task, but with the right guidance, it can be a rewarding and fulfilling experience. In this article, we will provide a step-by-step guide on how to start a nonprofit in Tennessee.

Step 1: File Articles of Incorporation

The first step in starting a nonprofit organization in Tennessee is to file articles of incorporation with the Tennessee Secretary of State's office. This document will outline the purpose of the organization, the name of the organization, and the names and addresses of the initial directors.

Step 2: Obtain a Federal Tax ID Number

Once the articles of incorporation are filed, the next step is to obtain a federal tax ID number from the Internal Revenue Service (IRS). This number is required to file taxes and to open a bank account in the name of the nonprofit organization.

Step 3: File for 501(c)(3) Status

After obtaining the federal tax ID number, the next step is to file for 501(c)(3) status with the IRS. This status is required to be eligible for tax-exempt status, which means that the nonprofit organization will not have to pay federal income taxes on its income.

Step 4: File for State Tax Exemption

In addition to filing for 501(c)(3) status, the nonprofit organization will also need to file for state tax exemption with the Tennessee Department of Revenue. This will allow the organization to be exempt from paying state income taxes on its income.

Step 5: Obtain a Business License

Once the nonprofit organization has obtained its federal and state tax exemptions, it will need to obtain a business license from the city or county in which it is located. This license will allow the organization to operate legally in the state of Tennessee.

Step 6: Establish a Board of Directors

Finally, the nonprofit organization will need to establish a board of directors and develop a set of bylaws that outline the purpose and operations of the organization. The board of directors will be responsible for overseeing the operations of the organization and making decisions on behalf of the organization.

Conclusion

In conclusion, starting a nonprofit organization in Tennessee requires a significant amount of planning and preparation. By following the steps outlined in this article, you can ensure that your nonprofit organization is formed correctly and is eligible for tax-exempt status.