Updated: Apr 28
Non-Profit corporation exist to provide a community service. Funding comes from donations and grants which are given from foundations, corporations, individuals, or government agencies. Tax reporting requirements are found on the IRS website.
Before a Non-Profit can register with their state, they must first apply to maintain tax exempt status from the Internal Revenue Service (IRS). An attorney or CPA will be able to help you and ensure that your business qualifies and help you file for the application. This process can extremely expensive and time consuming so hiring someone to ensure your business qualifies before you apply is important.
After obtaining the IRS approval, the non-profit is required to register with their state. You can reserve your business name while waiting for IRS approval by filing an “Application for Reservation of Legal Entity Name.”
The Non-Profit must have an “Articles of Incorporations” which needs to contain a clause stating the specific purpose of the business and a provision for the disposal of assets should the non-profit cease to exist.
Specifically, in Idaho, Non-profits engaged in the solicitation of donation from the public must comply with the “Idaho Charitable Solicitation Act.” This is similar in any state a Non-Profit is filing in.
There are many nuances associated with legally owning or running a Non-Profit corporation. Be sure to hire individuals such as an attorney or certified public accountant who will help your Non-Profit comply to all the laws of your state.