Georgia Attorneys’ Recommendations: The Eleven Steps to Nonprofit Incorporation
1. Reserve the Organization's Name
Search the Georgia Secretary of State Securities & Business Regulations Registered Charitable Organization Database before reserving your corporate name with the Corporation Division, 404-656-2817.
2. File Articles of Incorporation
File your articles of incorporation with the Georgia Secretary of State's Corporation Division, 404-656-2817, within 30 days of reserving your organization's name. The cost is $100 and the renewal fee is $30. Entities must file annually, between January 1 and April 1. When filing an annual registration, include an updated list of the board of directors. Status certificates that verify the organization's existence and good standing are available for $10.
3. Publish Intent to Incorporate
Publish a notice of Intent to Incorporate with county newspaper of record listed with the county clerk's office. This must be done simultaneously with filing the Articles of Incorporation. Check the blue pages of your local telephone book for the telephone number of your county clerk's office.
4. Apply for the Federal Employer Identification Number
Order Internal Revenue Service (I.R.S.) Application SS-4, "Applying for the Employer ID Number." This number is similar to a social security number for the organization. Contact I.R.S. Forms Distribution Center 800-829-3676 or http://www.irs.ustreas.gov/.
5. Prepare Organization By-laws
See above for an example of by-laws.
6. Conduct an Initial Meeting of the Board of Directors
Replace the nominee directors with elected directors, appoint officers, ratify Articles of Incorporation, adopt by-laws, discuss opening a bank account and indemnify directors. Prepare minutes for the meeting.
7. Apply for Federal Tax-exempt Status
Order I.R.S. forms and apply within 15 months of the date you filed your articles of incorporation:
No. 4220—Applying for 501(c)(3) Tax-Exempt Status
No. 4221—Compliance Guide for 501(c)(3) Tax-Exempt Organizations
No. 557—Tax-Exempt Status for Your Organization
No. 1023 (for 501(c)(3)'s)—Application for Recognition of Exemption
No. 1024 (for 501(c)(4) or (6)'s)—Application for Recognition of Exemption
No. 8718—User Fee Application
The Internal Revenue Service has posted on its Web site a new feature designed to help public charities understand the process for obtaining and maintaining tax-exempt status. Life Cycle of a Public Charity can be found by clicking on the "Charities & Non-Profits" section of the Web page.
The document contains links to forms, publications and other resources, and is divided into five sections:
· Starting Out
· Applying to IRS
· Annual Filings
· Ongoing Compliance
· Significant Events
Contact the I.R.S. Forms Distribution Center at 800-829-3676 or at www.irs.ustreas.gov. The application fee is $150 (if organization anticipates annual Gross receipts of less than $10,000 each year for the first 4 years) or $500 (if the organization anticipates annual gross receipts of more than $10,000 in the first year).
The I.R.S. estimates 70 hours to complete form 1023 or 1024, and 120 days for the application to be processed. Process time begins when no additional questions are requested of the applicant by the I.R.S.
If an organization has a question regarding: the application for recognition of exempt status; the advanced ruling period; completing an exempt organization tax return; or the status of the exempt organization, contact the I.R.S.'s toll free Tax-Exempt helpline at 877-829-5500.
8. Apply for Georgia State Tax-Exempt Status
An organization must have an I.R.S. determination letter to apply for state tax-exemption. Order Georgia Department of Revenue's State Tax Unit form 3605 Application for Recognition of Exemption. Contact http://dor.georgia.gov/ or 404-417-2402.
9. Apply for Georgia State ID Number
Contact Georgia Department of Revenue's Centralized Tax Payer Registration Unit and request form CRF-002, State Tax Registration Application, http://dor.georgia.gov/ or 404-417-4490.
10. Register as a Charitable Organization
Organizations with less than $25,000 in annual gross revenue and certain types of organizations are exempt from registration under the Georgia Charitable Solicitations Act. Order Georgia Secretary of State's Securities and Business Regulation form C-100 Charitable Registration Application.
This will allow the organization to raise funds in the state of Georgia. The cost is $25. Organizations must renew within one year of their registration date by filing form C101. The renewal fee is $10, reinstatement is $25, and amendment fee, including organizational name change or change of address, is $15.
A financial statement and I.R.S. form 990 or 990EZ must accompany the renewal form. A financial statement reviewed by an independent C.P.A. is required of organizations with annual proceeds between $100,000 and $500,000. A certified financial statement prepared by an independent C.P.A. is required if proceeds are $500,00 or more. Contact 404-656-4910. For more information, see "Charitable Organization and Paid Solicitor Forms."
11. Obtain Business License
Business license requirements are imposed by city and county governments. Contact the city clerks office for rules and application and renewal fees. Check the blue pages of your local telephone book for the telephone number of your county clerk's office.