To start a non-profit organization in Illinois, several legal requirements must be followed. These requirements are governed by the Illinois General Not For Profit Corporation Act.
First, the organization must select a name that adheres to the regulations outlined in the Act. The name must be distinguishable from other registered business names in Illinois and must not include certain restricted words, such as “bank,” “insurance,” or “trust.”
Next, the organization must prepare and file Articles of Incorporation with the Illinois Secretary of State. The Articles of Incorporation must include the name of the organization, its purpose, its registered agent, and the names and addresses of its initial directors.
Once the Articles of Incorporation are filed and approved, the organization must apply for tax-exempt status with the Internal Revenue Service (IRS). This involves completing and submitting Form 1023 or Form 1023-EZ, along with supporting documentation demonstrating the organization’s tax-exempt purpose and operations.
Additional legal requirements for non-profit organizations may include obtaining necessary licenses and permits, maintaining accurate records and financial statements, and complying with federal and state regulatory requirements.
It is important to note that the legal requirements for starting a non-profit organization in Illinois may vary depending on the specific circumstances of the organization. It is recommended that individuals seeking to start a non-profit organization consult with a licensed attorney or other qualified professional to ensure compliance with all relevant laws and regulations.
Additionally, ongoing legal counsel may be necessary to ensure that the organization operates in compliance with all applicable laws and regulations, and to address any legal issues or disputes that may arise.
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