Starting a Non-Profit Organization in California: A Step-by-Step Guide

Starting a non-profit organization in California can be a rewarding experience, but it requires careful planning and adherence to state regulations. In this article, we will guide you through the process of starting a non-profit organization in California, from choosing a name to obtaining tax-exempt status.

Choosing a Name

The first step in starting a non-profit organization in California is to choose a name that is unique and not already in use by another organization. You can search the California Secretary of State's database to ensure that the name you choose is available. Once you have chosen a name, you can reserve it by filing a Name Reservation Request with the California Secretary of State's office.

Obtaining Articles of Incorporation

After choosing a name, you will need to obtain Articles of Incorporation from the California Secretary of State's office. The Articles of Incorporation must include the name and address of the organization, the purpose of the organization, and the names and addresses of the incorporators. You can file the Articles of Incorporation online or by mail.

Obtaining a Federal Tax ID Number

Once you have obtained the Articles of Incorporation, you will need to obtain a Federal Tax ID Number from the Internal Revenue Service (IRS). This number is also known as an Employer Identification Number (EIN) and is used to identify your organization for tax purposes.

Obtaining a California Tax ID Number

In addition to a Federal Tax ID Number, you will also need to obtain a California Tax ID Number from the California Franchise Tax Board. This number is used to identify your organization for state tax purposes.

Obtaining a Business License

Depending on the type of activities your non-profit organization will engage in, you may need to obtain a business license from the California Secretary of State's office or from the local government where your organization is located.

Obtaining Tax-Exempt Status

Once you have obtained the necessary licenses and tax IDs, you can apply for tax-exempt status with the IRS. To do this, you will need to file Form 1023 with the IRS and pay a filing fee. The IRS will review your application and determine whether your organization is eligible for tax-exempt status.

Obtaining a California Non-Profit Corporation Certificate

After you have obtained tax-exempt status, you will need to obtain a California Non-Profit Corporation Certificate from the California Secretary of State's office. This certificate is required to operate a non-profit organization in California.

Conclusion

Starting a non-profit organization in California requires careful planning and adherence to state regulations. By following the steps outlined in this article, you can ensure that your organization is properly established and can operate effectively in the state.