What are the steps required for starting a nonprofit organization in California?

To start a nonprofit organization in California, you will need to complete several steps. Here is a brief overview of the process:

1. Choose a name and reserve it: You will need to choose a name for your nonprofit organization that is unique and not currently being used by another entity in California. Use the Name Availability Search tool from the California Secretary of State to check the availability of your desired name. If the name is available, file a Name Reservation Request with the Secretary of State to reserve it for 60 days.
2. Create your nonprofit's articles of incorporation: Your nonprofit's articles of incorporation serve as its founding document and must include specific information such as the organization's name, purpose, initial governing board members, and an address for service of legal process. Your articles of incorporation must also include specific language required by the California Nonprofit Public Benefit Corporation Law.
3. File your articles of incorporation with the California Secretary of State: You must file your completed and executed articles of incorporation with the California Secretary of State, along with a filing fee. Once your articles of incorporation are approved, your nonprofit will be recognized as a legal entity in California.
4. Obtain necessary licenses and permits: Depending on the activities of your nonprofit, you may need to obtain specific licenses or permits from local or state government agencies. For example, if you plan to hold fundraising events, you may need to obtain permits from local authorities.
5. Apply for tax exemption: To qualify for federal and state tax exemption, you will need to file Form 1023, Application for Recognition of Exemption Under Section 501(c)(3) of the Internal Revenue Code, with the IRS. California also requires nonprofits to file Form 3500 with the Franchise Tax Board to obtain state tax exemption.
6. Establish a governing board: Your nonprofit organization must have a governing board, which is responsible for overseeing the organization's activities and ensuring compliance with applicable laws and regulations.
7. Create bylaws: Your nonprofit's bylaws set out the rules and regulations for how your organization will operate, including procedures for meetings, elections, and other activities.

While the above steps provide a general overview of the nonprofit startup process in California, it is important to note that these steps may vary depending on the specific nature and goals of your organization. It is highly recommended that you seek the advice of a licensed attorney familiar with nonprofit law in California to guide you through the process and ensure compliance with all legal requirements.