Incorporate Your Nonprofit Without an Attorney....
If You're Tight
Once I decided to become a nonprofit I needed to be legal.
Incorporating essentially made my organization a legal entity. Why did I want to subject myself to the hassles of all of that paper work? The straight forward answer is for the benefits. Incorporating limits the liabilities of those who run the business, it ensures that the organization will continue until it is legally dissolved, and it’s necessary if you wish to apply for tax-exempt status. In order to incorporate I wrote up my articles of incorporation and mailed them along with a payment to our secretary of state. At the time my fee was only about $25.00. Once approved I applied for and was issued an employer identification number, or EIN, from the IRS, which is merely the numerical identification of my business for tax purposes. Among other things, I needed that EIN in order to open a corporate bank account. (All businesses have an EIN; it has nothing to do with getting tax-exempt status. I think of it as Social Security number for business.) Don’t think of articles of incorporation as something peculiar or mysterious. My bylaws contained all the requisite information. It is merely a legal record of the name, address, and purpose of your business. When I began my nonprofit I had very little resources. I completed the application for incorporating myself. I did think about hiring an attorney but as I mentioned, finances were tight. I could have asked to see the articles of an organization similar to mine. That probably would have been a great idea but I didn’t. Prior to applying I did check with the state of Ohio’s rules for incorporating nonprofits. Each state has its own rules and requirements about what is required and how to proceed. Pleased be advised. While I have used my best efforts in writing my experience of incorporating and subsequent experiences, I make no representation or warranties as to its accuracy and completeness. It is written with the understanding that I am not engaged in rendering legal, accounting, or other professional service. If legal advice or other expert assistance is required, the services of a compotent professional person should be sought.
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