Starting a Non-Profit in Michigan: A Step-by-Step Guide

Starting a non-profit organization in Michigan can be a rewarding and challenging experience. In this guide, we'll walk you through the steps to start a non-profit in Michigan, from registering your organization to obtaining tax-exempt status.

Step 1: Choose a Name for Your Non-Profit

Before you can register your non-profit, you'll need to choose a name that is unique and not already in use by another organization. You can search the Michigan Department of Licensing and Regulatory Affairs (LARA) website to check if your desired name is available.

Step 2: Register Your Non-Profit

To register your non-profit, you'll need to file articles of incorporation with the Michigan Department of Licensing and Regulatory Affairs (LARA). You can file online or by mail.

Step 3: Obtain Tax-Exempt Status

To obtain tax-exempt status, you'll need to file Form 1023 or Form 1024 with the Internal Revenue Service (IRS). You can file online or by mail.

Step 4: Obtain State and Local Permits and Licenses

You may need to obtain state and local permits and licenses to operate your non-profit. Check with your local government to determine what permits and licenses you need.

Step 5: Create a Board of Directors

Your non-profit will need a board of directors to oversee its operations. The board should consist of at least three members who are not related to each other.

Step 6: Develop a Business Plan

Develop a business plan that outlines your non-profit's mission, goals, and strategies for achieving those goals. This will help you stay focused and make informed decisions.

Step 7: Obtain Insurance

You may need to obtain insurance to protect your non-profit and its board members from liability. Check with your insurance provider to determine what type of insurance you need.

Step 8: File Annual Reports

As a non-profit, you'll need to file annual reports with the Michigan Department of Licensing and Regulatory Affairs (LARA) and the Internal Revenue Service (IRS). These reports will help you stay compliant with state and federal laws.

Step 9: Maintain Compliance

Throughout the year, you'll need to maintain compliance with state and federal laws and regulations. This includes filing annual reports, obtaining insurance, and maintaining a board of directors.