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What Is A Nonprofit Incorporation?
What Is A Nonprofit Incorporation?
Liz Myers avatar
Written by Liz Myers
Updated over 2 months ago

Incorporation is a requirement in the 501(c)3 application process as it establishes your

organization as a legal nonprofit corporation in your state and offers several important benefits including:

● Name Security - once incorporated, your nonprofit name is registered at the state level, which generally prevents other companies from registering your same name

● Creates a “retroactive date” for when the 501(c)(3) status will be in effect. This means that the IRS will grant tax-exempt status back to your incorporation date, not the date they approve your 501(c)3 status. The sooner the incorporation date, the sooner the 501(c)3 status will be effective.

● Allows you to obtain a Federal Employer Identification Number (EIN) and open a bank

account.

The application, price, and timeline of nonprofit incorporation varies in each state with typical approval times from 1-3 business weeks.

Additionally, specific IRS language is required on your articles application, and if it’s missing, the IRS will reject your 501(c)3 application. This language and guaranteed approval are all a part of our Nonprofit Formation Packages.

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