Skip to content
Ask a question
All posts

What legal steps do I need to take before starting a nonprofit organization in California?

Picture of Chris Battis By   ·  1 minute read

To start a nonprofit organization in California, you must take the following legal steps:

  1. Choose a name for your nonprofit organization: The name you choose must be unique and not already in use by another nonprofit in California. You can search for existing names on the California Secretary of State's business search page.
  2. File articles of incorporation with the California Secretary of State's office: This document establishes your nonprofit as a California corporation and includes information such as your organization's name, purpose, and Board of Directors. The articles of incorporation must be signed by your organization's incorporator(s) and accompanied with a filing fee.
  3. Apply for a federal Employer Identification Number (EIN) from the IRS: This nine-digit number is used to identify your nonprofit organization for tax purposes. You can apply for an EIN for free on the IRS website.
  4. Apply for tax-exempt status with the IRS: To obtain tax-exempt status, you must file Form 1023 with the IRS and pay a filing fee. This process can take several months and requires detailed information on your organization's activities and financials. Once your application has been approved, your nonprofit will be exempt from federal income tax and may be eligible for other tax benefits.
  5. Register with the California Attorney General's office: In California, nonprofits are required to register with the Attorney General's office within 30 days of receiving assets. Additionally, if your nonprofit solicits donations from the public, you must register with the Attorney General's Registry of Charitable Trusts.
  6. Obtain necessary licenses and permits: Depending on the activities of your nonprofit organization, it may be necessary to obtain licenses or permits from state or local agencies. For example, if your nonprofit operates a thrift store, you may need a resale permit from the California Board of Equalization.

It is important to note that legal requirements for nonprofits may vary depending on the type of organization and its specific activities. Consulting with a licensed attorney experienced in nonprofit law can help ensure that you have met all legal obligations and have a solid foundation for your nonprofit organization.