How to Start a Nonprofit in Florida

1. Name Your Organization

   Your organization’s name establishes its brand and is also important for incorporating with the state. The legal name of your nonprofit corporation may not conflict with any other organization registered in the state. Make sure the name is available and meets state requirements.

   Name Search:

   Florida Department of State - Division of Corporations Name search

   Suffix:

   "(1) A corporate name: (a) Must contain the word “corporation” or “incorporated” or the abbreviation “Corp.” or “Inc.” or words or abbreviations of like import in language as will clearly indicate that it is a corporation instead of a natural person, unincorporated association, or partnership. The name of the corporation may not contain the word “company” or its abbreviation “Co.” (b) May contain the word “cooperative” or “co-op” only if the resulting name is distinguishable from the name of any corporation, agricultural cooperative marketing association, or nonprofit cooperative association existing or doing business in this state under part I of chapter 607, chapter 618, or chapter 619." FS &sect617.0401

2. Recruit Incorporators and Initial Directors

   The incorporator is the person who signs the Articles of Incorporation for your nonprofit. You will need at least one, but can have more than one. Directors make up the governing body of your nonprofit corporation and are stakeholders in your organization’s purpose and success. You’ll want to identify three, unrelated individuals to meet IRS requirements. You will also want to be aware of any age or residency requirements.

   Florida director requirements:	Number: minimum 3 Qualifications: Natural person 18 years of age or older. One director may be 15 years of age or older if permitted by board of directors or bylaws. No residency requirement. No membership requirement. Term: 1 year Quorum: majority Committee: minimum 2 directors
   Florida officer requirements:	Defined in articles or bylaws. One officer prepares minutes of the directors' and members' meetings and authenticates records of the corporation. Elected by board Term: 1 year Two or more offices may be held by the same individual.

3. Appoint a Registered Agent

   A registered agent is responsible for receiving legal notices on behalf of your organization. The appointed registered agent must be physically located in the state and maintain an office that is open during regular business hours. As a nationwide registered agent, our service is designed to receive your legal documents and provide secure access to those documents through your online account. Our local Florida registered agent office is located in St. Petersburg, FL. We offer registered agent service independently or as part of our nonprofit formation packages.

4. Prepare and File Articles of Incorporation

   Your nonprofit’s articles of incorporation officially mark the creation of your organization. They document where and when the organization was formed and capture other information necessary to verify its existence. While requirements for language vary from state-to-state, there are some basic provisions that the IRS will look for when you apply for 501(c)(3) exemption. It is important to customize the articles for your organization and make sure you meet the state and IRS requirements. Meeting these requirements from the start will help avoid having to make amendments later or risk getting your 501(c)(3) application rejected. Some states will also require you to publish your articles of incorporation, so be mindful of any deadlines and publishing instructions.

   Agency:	Florida Department of State - Division of Corporations
   Form:	Non-Profit Articles of Incorporation
   Filing Method:	Mail or online
   Agency Fee:	$35 filing fee + $35 designation of registered agent fee = $70 state fee
   Turnaround:	~1-3 days online. ~8-17 days by mail
   Law:	2013 Florida Statues - Chapter 617: Corporations Not For Profit
   Notes:	Provide the state-prescribed cover letter, the original, and a copy to file by mail.
   Fact Checked:	6/13/17

5. File Initial Report

   After filing articles of incorporation, you must file an initial report.

   Not required

   
   
   

6. Obtain an Employer Identification Number (EIN)

   This unique, nine-digit number is assigned by the IRS to identify your nonprofit. All types of nonprofits will apply for an EIN, not only those that hire employees. You will use your EIN to open a bank account, apply for 501(c)(3) status, and submit 990 returns to the IRS.

   Agency:	Internal Revenue Service (IRS)
   Form:	IRS Form SS-4
   Filing Method:	Mail, phone, fax, or online.
   IRS fee:	$0
   Turnaround:	Immediately online or by phone. 4 business days by fax. 4-5 weeks by mail.
   Notes:	The IRS website is only available during certain hours. Print your EIN before closing your session. For additional guidance, see IRS Pub 1635: Understanding Your EIN.
   Fact Checked:	8/28/19

7. Store Nonprofit Records

   As you launch your nonprofit, you will receive a number of official documents. Organizing these documents in one place will save you headaches down the road. You will soon have numerous items to keep in your records including your EIN letter, bylaws, meeting minutes, 501(c)(3) determination letter, and more.

   
   
   

   A great way to maintain necessary documentation is Records Manager, our software for storing records securely, tracking directors and officers, and getting notified of meetings.

8. Establish Initial Governing Documents and Policies

   Your bylaws are the governing document for your nonprofit. They serve as your organization’s operating manual and should be consistent with your articles of incorporation and the law. When your Board of Directors meets for the first time, you’ll review and ratify the bylaws and they will be a roadmap for governance from there.

   At the same time, you’ll also want to create and adopt a conflict of interest policy. A conflict of interest is when someone in a key position in your nonprofit has competing interests and is making choices that could benefit themselves to the harm of the organization. Personal interests should be set aside and organizational interests prioritized. If a conflict of interest does arise, it should be disclosed immediately.

   Your application to the IRS for 501(c)(3) exemption will require that both the bylaws and the conflict of interest policy are approved and adopted. Once they’ve been adopted, safely store them in your Nonprofit Records Kit.

9. Hold Organizational Meeting of the Board of Directors

   The initial organizational meeting of your Board of Directors will be incredibly productive. At this meeting you will approve the bylaws, adopt the conflict of interest policy, elect directors, appoint officers, and approve resolutions such as opening the organization’s bank account. Important decisions are being made so be sure to record them in the meeting minutes.

10. Get Florida State Tax Identification Numbers/Accounts

    Florida offers a consolidated state tax registration application.

    Submit to:	Florida Department of Revenue http://dor.myflorida.com/dor/
    Form:	Form DR-1: Florida Business Tax Application
    Guidance:	Florida Department of Revenue - Start-up Kit for New Business Owners
    Filing Method:	Mail or online
    Fee:	$0 + $5 for sales tax registration (if applicable)

11. Apply for 501(c)

    Applying for 501(c) tax exemption can feel like the most daunting step in bringing your nonprofit dream into reality, but obtaining tax exemption comes with many benefits. You will be able to apply for grants and grow your fundraising success in addition to being exempt from IRS income tax. 501(c) is the chapter of the Internal Revenue Code that regulates nonprofit organizations. Like others, you may be most familiar with 501(c)(3) nonprofits, including charities and foundations. 501(c)(3) nonprofits apply using Form 1023 or Form 1023-EZ. Review the criteria for each application and make sure you meet the eligibility requirements set out by the IRS. Other types of nonprofits, including 501(c)(4)s and 501(c)(6)s, apply using Form 1024. After reviewing and approving your application, the IRS will return a Determination Letter officially recognizing your exemption.

    Completing the federal application for tax exemption is significantly easier with the assistance and support of a professional. Find someone with the expertise to ensure the correct application is being used and is completed accurately. A well-prepared application takes time, over 100 hours by IRS estimates, so put yourself on the path to success by finding a specialist to walk alongside you in the journey - from start to tax-exempt finish!

    Agency:	Internal Revenue Service (IRS)
    Form:	IRS Form 1023, IRS Form 1023-EZ, or IRS Form 1024
    Instructions:	IRS Instructions for Form 1023, IRS Instructions for Form 1023-EZ, or IRS Instructions for Form 1024.  Also see guidance IRS Pub 557: Tax-Exempt Status for Your Organization.
    Filing Method:	Mail
    Agency Fee:	$275 for organizations filing Form 1023-EZ and $600 for organizations filing Form 1023.
    Turnaround:	1023-EZ average: <1 month. 1023 average: 3-6 months.
    Fact Checked:	8/28/19

    

    Tax-Exempt in 2 Weeks!

    Download the case study of how our client, Reform It Now, obtained 501(c)(3) tax exemption in only two weeks using the new IRS Form 1023-EZ!

    From filing the 1023EZ on August 1st to receipt of the determination letter on August 14th is, in my humble opinion, simply breathtaking and I dare say, ONLY Harbor Compliance could have achieved that.

    

    Dr. Bob A.Reform It Now, Inc.

12. Apply for State Tax Exemption(s)

    With your IRS Determination Letter in hand, make sure you familiarize yourself with your state’s requirements for recognizing your nonprofit’s tax-exempt status. This is an area where requirements vary state-by-state. Many states issue their own tax-exempt certificate that can be used for sales and use tax purposes, but it may require application and periodic renewal.

    To file to obtain exemption from state income tax:

    Agency:	Florida Department of Revenue
    Notes:	Not-for-profit corporations are subject to corporate income tax. However, a not-for-profit corporation that is exempt from federal taxation under Internal Revenue Code section 501(c)(3) is only required to file a Florida corporate income tax return (Form F-1120) if it has unrelated business income or it files federal Forms 990-C or 990-T with the Internal Revenue Service.
    Fact Checked:	10/19/16

    To file to obtain Sales Tax Exemption:

    Agency:	Florida Department of Revenue
    Form:	DR-5: Application for a Consumer's Certificate of Exemption
    Agency Fee:	$0
    Law:	Chapter 212, Florida Statutes
    Notes:	Certain not-for-profit organizations are exempt from sales and use tax on purchases and rentals of tangible personal property if that property is used in carrying out the organization's not-for-profit activities. See the form for information on the available exemptions.
    Fact Checked:	7/20/18

13. Register for Charitable Solicitation (Fundraising)

    This is another area where laws differ from state to state, but most states require any nonprofit soliciting donations to register to do so on an annual basis. This means registering in the state prior to soliciting any resident of that state. Registering in your home state in essential, but you may also need to register other states depending on the scope of your organization.

    Florida Charitable Organizations/Sponsors Registration

    Agency:	Florida Department of Agriculture and Consumer Services - Division of Consumer Services
    Law:	Florida Statutes § 496.405 et seq.
    Foreign Qualification is Prerequisite:	No
    Registered Agent (Special Agency) Required?	No
    Fact Checked:	4/10/20

    One-Time Exemption Registration

    More Details

    Exemption Eligible Organizations:	Religious organizations Educational organizations Government entities Blood establishments as defined in FL Stat § 381.06014 Membership organizations Political groups Appeals for individuals
    Notes:	Organizations must email the state to receive an exemption, but no registration is required.
    Fact Checked:	1/8/20

    Registration to Obtain Exemption

    More Details

    Exemption Eligible Organizations:	Charities with less than $25,000 in total revenue during the preceding fiscal year and no professional solicitors
    Form:	Small Charitable Organizations Application
    Agency Fee:	$0
    Fact Checked:	8/15/18

    Renewal to Maintain Exemption

    More Details

    Exemption Eligible Organizations:	Charities with less than $25,000 in total revenue during the preceding fiscal year and no professional solicitors
    Form:	Small Charitable Organizations Application (Renewal)
    Agency Fee:	$0
    Due:	Annually by the date of initial registration.
    Fact Checked:	8/15/18

    Initial Registration

    More Details

    Form:	Charitable Organizations / Sponsors Registration Application
    Filing Method:	Mail or online
    Agency Fee:	$10-400, depending on contributions received during the prior fiscal year ($0 if exempt)
    Turnaround:	2-3 weeks
    Notes:	Notarized signature of the CFO or treasurer is required. Nonprofits who will solicit at Florida highway rest stops must obtain permission from their local Department of Transportation Maintenance Unit. Use Form #850-040-70, Permit Application for Public Use of Rest Areas, Wayside Parks and Solicitation on State Highways. Start by identifying local maintenance units at the Florida Department of Transportation Office of Maintenance. Some Florida counties and municipalities may require charities that solicit in-person to register prior to fundraising.
    Before you Apply:	Domestic Applicants: Check the available exemptions to see if your charity is eligible for exemption from the full registration requirement. If your charity meets the audit threshold, obtain an audited financial report to submit with your registration application. Look through the list of required attachments and make sure that you have each required document in hand before starting the registration application. Foreign Applicants: Check the available exemptions to see if your charity is eligible for exemption from the full registration requirement. If your charity meets the audit threshold, obtain an audited financial report to submit with your registration application. Look through the list of required attachments and make sure that you have each required document in hand before starting the registration application. If you will foreign qualify in Florida, obtain a certificate of good standing from your home state to submit during the foreign qualification process. The certificate cannot be more than 90 days old when filing foreign qualification documents.
    How to Apply:	Domestic Applicants: File formation documents to form an entity with the Florida Department of State. Submit a completed Charitable Organizations / Sponsors Registration Application and all required attachments to the Florida Department of Agriculture and Consumer Services - Division of Consumer Services. Foreign Applicants: Determine whether or not your charity will need to foreign qualify based on your activity in Florida. If not required, skip to number 3. File foreign qualification documents with the Florida Department of State. Submit a completed Charitable Organizations / Sponsors Registration Application and all required attachments to the Florida Department of Agriculture and Consumer Services - Division of Consumer Services.
    Required Attachments:	IRS form 990 Audited financials (if applicable) IRS determination letter List of officers and directors Professional fundraising contracts
    Fact Checked:	4/14/20

    Registration Renewal

    More Details

    Form:	The state will mail you your renewal form.
    Filing Method:	Mail or online.
    Agency Fee:	$10-400, depending on contributions received during the prior fiscal year
    Due:	Your license must be renewed annually between your intial registration date and 60 days prior.
    Due Date Extension:	Due dates can be extended for 180 days beyond the original due date by submitting a request for extension through the online portal.
    Penalties:	There is a late fee of $25 for each month that passes after the due date.
    Notes:	Carefully ensure you include all required attachments, including yoru annual financial report.
    Required Attachments:	IRS form 990 Audited financials (if applicable) List of officers and directors Professional fundraising contracts IRS determination letter
    Fact Checked:	2/4/20

    Contract Filing

    More Details

    Due:	Charities must submit all contracts they have with professional solicitors, professional fundraising consultants, and commercial co-venturers during initial charitable registration and during renewal for their charitable registration.
    Fact Checked:	10/9/19

    Change of Fiscal Year

    More Details

    Agency Fee:	$0
    Turnaround:	1-2 business days
    Notes:	Email the state to inform them of the change.
    Fact Checked:	12/7/18

    Cancellation

    More Details

    Agency Fee:	$0
    Notes:	To close out your registration, submit a letter stating that your organization no longer solicits in Florida along with documentation supporting this claim. The department will typically accept a disclaimer on the organization's donation page that they will not accept funds from residents of Florida.
    Fact Checked:	7/14/20

    To fundraise nationally or online, please see our Fundraising Compliance Guide. Our services manage your initial, renewal, and exemption filings in every state.

14. Obtain Other Business Licenses & Permits

    Running your nonprofit corporation legally also means securing all applicable licenses and permits. The range of local, state, and federal requirements is wide. Access resources like the Small Business Administration Business License & Permit look-up tool and search by your business type and locality.

    Florida often requires a business or occupational license, which is a local business tax receipt issued yearly by the county government. Most but not all counties in Florida require that you register your new business with them. Check with your local tax collector's office to see what the requirements are http://dor.myflorida.com/dor/property/taxcollectors.html

    In Florida, bingos, raffles, and other charitable games are regulated by 2012 Florida Statutes - Chapter 849: Gambling. Gambling and gaming in Florida is complex- oversight varies based on the game and location where it is held. Also review and abide by county and municipal regulations - for example, a Pinellas County bingo license comes with a 3-part application and $355 fee.

You’ve made it! You turned your passion into a legitimate nonprofit corporation exempt under IRS 501(c) and are benefiting your community. That solid foundation on which you built your organization requires ongoing maintenance. Investing in maintaining compliance with all of the government agencies is an ongoing responsibility and commitment needed to ensure your vision continues long into the future. Check out our compliance guide to learn more!

Once you have registered your nonprofit per the steps listed above, you will need to maintain compliance with all of the government agencies. Staying current with the IRS and state requirements is an ongoing responsibility. Continue reading our Florida nonprofit compliance guide to learn more!

Continue reading "Florida Nonprofit Compliance"

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