How to Start a Nonprofit Corporation in New York

Start a Nonprofit in New York

Starting a nonprofit corporation in New York requires time, dedication and a clearly defined mission. In other words, you must determine which community need you want to fulfill and the role your corporation assumes in fulfilling the need. Once you answer those questions, you can begin the startup process. Nonprofit startup can be complex in nature if you do not understand the basic steps you must follow to form a state, local and federally compliant corporation.

Instructions

1. Select a name for your nonprofit that includes "corporation," "limited," or "incorporated" written in its entirety or abbreviated. Conduct a search on the New York Department of State "Corporation & Business Entity" database (dos.ny.gov).

2. Complete an "Application for Reservation of Name" form to reserve your corporation name. You can find an application form on the Department of State's website or contact the department to obtain an application. Complete the application, print, sign and mail it to the Division of Corporations in Albany. Include a $10 application fee, as of August 2011.

3. Select your board of directors. New York requires at least three directors who are 18 years of age or older. Nonprofits organized for educational, recreational, youth development or delinquency prevention purposes, for individuals under 18 years of age, may have one or more 16-year-old director.

4. Create your articles of incorporation and include them on the "Certificate of Incorporation." Use the form on the Division of Corporation's website or purchase forms from a legal documents store. Required information includes corporation name, definition, purpose and county location. Sign, date and mail the certificate to the division's office in Albany. Include a $75 filing fee, as of August 2011.

5. Create your bylaws and keep a copy in a records book at your corporation's primary place of operation. Bylaws should include rules of operations, directors' responsibilities and financial information. (Ref. 5)

6. Conduct your first corporation meeting to appoint corporate officers, accept bylaws, create a budget, choose a bank and corporate seal. Make sure to keep a records book for important papers such as your bylaws, minutes and meeting records.

7. Obtain an Employer Identification Number from the Internal Revenue Service (IRS.gov) by phone, fax or online. Download Form SS-4 from the IRS website and mail or fax the form to the IRS, EIN office in Cincinnati, Ohio.

8. Apply for local, state and federal tax exemptions. Complete IRS Form 1023 "Application for Recognition of Exemption" for federal exemption status. Download the form online or contact the IRS via phone to obtain the form.

9. Complete Form CT-247 to claim exemption from New York franchise taxes and Form ST-119.2 to claim exemption from New York state and local sales and use taxes. Mail the CT-247 form to the New York State Tax Department's Corporation Tax office in Albany. Send the ST-119.2 form to the New York State Tax Department's Exempt Organizations Unit in Albany.

10. Download and complete Form CHAR410 to register your organization with the New York Attorney General's Charities Bureau of the Attorney General's Office (charitiesnys.com). Mail the form and fee to the charities bureau in New York City. As of August 2011, the application fee is $25.

11. Register with the New York State Department of Taxation and Finance using the New York State Department of Labor's employer registration portal (labor.state.ny.us) or contact the department by phone. You may also contact the taxation and finance department to register (tax.ny.gov).

Tips & Warnings

• You can fax your completed forms to the N.Y. Department of State and pay by credit card by filling out the authorization form, which can be accessed by clicking the "Payment by Credit Card" bullet listed under the various forms. Access the fax number by clicking the bottom menu item "Contact and Ordering Info" from any of the main web pages.

• Federal tax exemptions for nonprofit corporations are described on the IRS website at www.irs.gov/charities/index.html.

References

• Citizen Media Law Project: Forming a Nonprofit Corporation in New York
• New York Department of State: Division of Corporations: Not-for-Profit Corporations Filing
• New York State Legislature: Not-For-Profit Corporation: Board of Directors
• New York Department of State: Division of Corporations: Not-for-Profit Incorporation Guide
• Citizen Media Law Project: Bylaws for Nonprofit Corporations
• Internal Revenue Service: "Where to File Your Taxes" (for Form SS-4)