How Much Does it Cost to Incorporate a Non-Profit?

Starting a non-profit requires that you incorporate the organization to open bank accounts and meet IRS requirements. The cost of incorporating a non-profit is substantially less than a for-profit business; but costs will fluctuate depending on the state where you incorporate.

The Process

• Before starting the incorporation process, obtain an employer identification number from the IRS. Although this is not a requirement to incorporate, the organization will need the number to open a bank account. Visit the state corporation bureau and obtain non-profit incorporation forms. Fill out the forms, and visit the state corporation office again and pay the filing fees.

Verification

• Incorporating involves filing the articles of incorporation, which can be a few short pages or a hundred pages long, offering details like the nature of the non-profit, the purpose, its headquarters and names of all the officers. These are complex legal documents, which need to be correct. Have an attorney check them before filing.

Costs

• Costs vary from state to state and depend on how many fees are involved. Incorporating a non-profit involves fees like business name reservation, transfer of name, certification of formation, amendment, registration of address, and associated fees ranging from $5 to $50 each. These fees add up to the total cost of incorporation. Depending on your state and location, the cost can range from $60 to $300.

Additional Costs

• There may be added costs as well, such a notary charges or the fee for an attorney to verify the documentation. In some cases, the attorney will discount the fee or not charge a non-profit organization.

Benefits

• This may seem like an expensive process, but it is very cost effective in other ways. Once incorporated you can apply for tax-exempt status with the IRS, and can offer receipts to accept tax-deductible donations of money and materials.