Introduction
Starting a nonprofit organization in Illinois can be a rewarding experience. Not only will you be able to make a difference in your community, but you will also be able to take advantage of certain benefits that come with running a nonprofit. In order to start a nonprofit in Illinois, there are several steps and considerations you need to take into account. This article will provide an overview of how to start a nonprofit in Illinois, including the steps for registration, important considerations when setting up a nonprofit, and resources available to help.
Steps for Registering a Nonprofit in Illinois
The first step in registering a nonprofit in Illinois is to file the Articles of Incorporation with the Illinois Secretary of State. The Articles of Incorporation must include the name of the organization, its purpose, the address of the principal office, the name and address of the registered agent, and the name and address of the incorporator. Once the Articles of Incorporation have been filed, the next step is to apply for an Employer Identification Number (EIN). An EIN is a unique number assigned to a business by the Internal Revenue Service (IRS). It is used to identify the business for tax purposes. Lastly, you will need to obtain state tax exempt status in order to be eligible for certain benefits such as tax deductions, grants, and other forms of funding.
Important Considerations When Starting a Nonprofit in Illinois
When starting a nonprofit in Illinois, there are several important considerations to keep in mind. First, you will need to choose a name for your organization that is not already taken. It is also important to consider the legal structure of the organization and the role of the Board of Directors. You will need to establish bylaws for the organization and ensure that all of the proper documents are filed with the state. Additionally, you should consider the types of services or programs you will offer and any potential fundraising activities.
Process for Obtaining Tax-Exempt Status in Illinois
In order to obtain tax-exempt status in Illinois, you will need to complete Form 1023. This form is used to apply for tax-exempt status from the IRS. On the form, you will need to provide detailed information about the organization, including its purpose, mission statement, and financial information. Once the form has been completed, it must be submitted to the IRS. The IRS will review the application and determine whether or not the organization is eligible for tax-exempt status.
Resources Available to Help Start a Nonprofit in Illinois
There are a variety of resources available to those interested in starting a nonprofit in Illinois. Professional assistance is available from attorneys and accountants who specialize in nonprofit organizations. There are also numerous online resources available to help guide individuals through the process of starting a nonprofit. Additionally, there are government agencies such as the Illinois Attorney General’s Office and the Illinois Department of Revenue that can provide helpful information and guidance.
Conclusion
Starting a nonprofit in Illinois requires the filing of the Articles of Incorporation, obtaining an Employer Identification Number (EIN), and applying for state tax exempt status. These steps, along with important considerations such as choosing a name, establishing a board of directors and determining the legal structure of the organization, will help ensure that your nonprofit is properly set up. There are also numerous resources available to help individuals through the process of starting a nonprofit in Illinois. With the right guidance and information, starting a nonprofit in Illinois can be a rewarding and successful endeavor.
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