How to Become a Non-Profit Organization in Texas
The state of Texas defines a nonprofit as any organization whose profits are not distributed among the owners and directors of the entity. A Texas nonprofit may or may not be formally organized under the state. However, in order to receive federal tax exemption, the nonprofit must apply for incorporation with the state of Texas and for tax exempt status from the Internal Revenue Service.
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Instructions
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Draft a document outlining the structure of your organization to keep on record. Texas nonprofits do not have to be incorporated as a business entity, but they must be composed of three or more people and maintain records.
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Complete Form 202 "Certificate of Formation for a Nonprofit Organization" found on the website of the Secretary of State of Texas under "Business/Nonprofit Forms" if you plan on incorporating. This form asks for information regarding the location of the office and the registered agent, as well as who the directors will be. Form 202 also stands as your Articles of Incorporation, the official organizing documents for the state. The registered agent is a designated person with an address in the state who receives mail for the organization. There is a $25 fee for filing.The form may be faxed in with a credit card number or mailed with a check to the Secretary of State. The form must be in duplicate. You will receive a certified copy in the mail for your records.
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File Form 706 if you intend to remain unincorporated. This form informs the state of your registered agent, if you choose to have one. There is a $25 filing fee, but does not stand in place of a certificate of formation which certifies official state formation.
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Complete federal documents if you are incorporating and requesting 501c (3) status. The necessary forms are: Form SS-4 requesting an Employer Identification Number (which can be submitted online), Form 1023 which requires a copy of your Articles of Incorporation and financial information for three upcoming years, and Form 8718. All forms can be found on the website of the Internal Revenue Service.
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Tips & Warnings
Make copies of all filed documents for your personal files.
All records are subject to state searching, so keep meticulous files.
References
Resources
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