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.