How do I Start a LCC or Non-Profit Business?
If you have ever considered forming a LLC or a nonprofit business, then you need to follow several rules depending upon where you choose to incorporate your business. Each state has variations to the general LLC rules. Contacting an expert or business attorney will ensure that you properly follow the state's legal prerequisites. These straightforward rules will help you produce a strategy for beginning an LLC or a non-profit entity.
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Instructions
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Your business's purpose. Define your business's purpose and write a detailed mission statement: a written explanation of why your business is a good investment for volunteers, donors and financial institutions.
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Creating a corporation. Brainstorm business names that will produce originality, yet convey a defined presence in the business community. Include "LLC" or "corporation" as an abbreviation at the end of your chosen business name. Check the availability of your chosen business name through your secretary of state clerks office.
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Stick to business regulations and rules Shape a board of directors with a genuine interest in the future of your non-profit business. Contact the secretary of state's office in your state for the proper forms, that must be filled out to establish a non-profit. Sign the Articles of Incorporation while being mindful of each line on those forms. The forms will request your company's name, purpose of business, director information, personal liability statues, dissolution and the primary incorporator of the business. Check your state's website for the appropriate fees that must accompany your Articles of Incorporation filing.
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Keep tabs on laws. Record your corporations bylaws. These laws are the bible to your corporation and how it will function. They articulate rules and operations for directors and official officers, appointing of corporation officers, meeting regulations and rules, grant money allocation, procedures and directives pertinent to regulating corporations.
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Register your business with your state. Register your business with your state and Attorney General (for the nonprofit division) . If you choose to fund raise on behalf of your organization, you must apply for a solicitation license. Your local city department will have specific requirements on soliciting funds. File a sales tax exemption from your state. Apply for a bulk mail permit for non-profit status. Open a non-profit checking account and make sure liability insurance is paid for, to protect and serve your board members.
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Tips & Warnings
Separate your individual financial transactions from your non-profit corporation.
Research your individual state laws on corporations and follow exact regulations, so that there are no future audits.
Do not be disorganized when it comes to keeping precise transactions, finances, forms and files for your non-profit.
References
Resources
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