Starting a Nonprofit

 Starting a Nonprofit

Source: Donorbox

Indiana has fairly straightforward laws when starting a nonprofit in the state.  The website, Harbor Compliance, lays out the steps in an easy step-by-step format.  I will summarize that steps in this post.

1. Choose a name

• The name can't be in conflict with another businesses - make sure to check the Indiana Secretary of State website for conflicts. 
• Must meet standards in Indiana - must contain corporation (Corp.), incorporated (Inc.), company (Co.) or limited (Ltd.)

2. Recruit incorporators and directors

• Incorporator - signs Articles of Incorporation - need at least 1 
• Directors - governing body - minimum of 3
• Maximum term - 5 years
• Majority quorum
• Officers -appointed by board of directors
• president, secretary, treasurer, etc.
• 1 prepares minutes of of meetings and authenticates records of corporation
• offices can be held by same individual

3. Get a registered agent

• They receive the legal notices of the company.
• Must be physically located in the state
• Must have a physical office open during business hours

4. Prepare Articles of Incorporation

• Form - Articles of Incportation 4162
• $50 fee
• File by 
• Fill in person - 24 hour turn around
• Mail - 5-7 business day turn around
• Online - 15 minute turn around

5. Obtain an EIN (Employer Identification Number)

• Form - IRS Form SS-4
• File by 
• Mail - 4-5 business day turn around
• Fax - 4 business day turn around
• Online - immediate turn around

6. Adopt Bylaws

• Bylaws are the governing body of the organization 
• This is done by a Board of Director vote.
• Also, need to establish a conflict of interest policy in case someone is working for their own motives verses the companies. 
• To file for a 501c both of these (bylaws and conflict of interest policy) need to be adopted by the board. 

7. Have an Organizational Meeting of Board of Directors

• The first meeting needs to be done so that bylaws and the conflict of interest policy are ratified and established.  The first meeting should, also include election of the directors, appointing of officers, and getting approval of all other kinds of resolutions to run the business.
• Make sure to record the minutes of the meeting.  

8. Get the Indiana State Tax Identification Number 

• Form BT-1: Indiana Business Tax Application
• $25 state fee

9. Apply for 501 Status (Can be the most challenging part)

• IRS form 1023, 1023-EZ, or 1024
• Fees
• $275 fee for Form 1023-EZ
• $600 fee for Form 1023
• Must be done by mailing in the form
• Filing turn around
• Form 1023-EZ - under 1 month
• Form 1023 - 3-6 month

10. Apply for State Tax Exemption

• Exemption from State Income Tax
• Form NP-20A: Nonprofit Application for Sales Tax Exemption
• $0
• Due within 120 days of incorporation
• Exemption from State Sales Tax
• Form NP-20: Nonprofit Application for Sales Tax Exemption
• $0
• Due within 120 days of incorporation 

References

Donorbox. (2022, June 16). How to start a nonprofit organization: 10 step guide. Retrieved from https://donorbox.org/nonprofit-blog/start-a-nonprofit

Harbor Compliance. (2022, June 30). How to start a nonprofit in Indiana. Retrieved from https://www.harborcompliance.com/information/indiana-nonprofit-compliance