Starting a Nonprofit Organization in Ohio

To start a nonprofit organization in Ohio, you will need to comply with state and federal laws governing the formation of nonprofit organizations. Here are the legal requirements for starting a nonprofit organization in Ohio, and guidelines to ensure you are operating within the law:

1. Choose a name for your nonprofit organization - Begin by selecting a unique name for your nonprofit organization that has not already been taken by another entity. You can search for name availability on the Ohio Secretary of State website or through the Ohio Business Gateway.
2. Draft nonprofit articles of incorporation - Articles of Incorporation is a legal document that officially creates a nonprofit organization in Ohio. It must include the following information:
   • The name and location of the nonprofit organization
   • A statement of purpose or mission of the nonprofit organization
   • Information about the incorporation process, including any special provisions or considerations
3. Apply for tax-exempt status - After forming your nonprofit organization, you must apply for federal tax-exempt status with the Internal Revenue Service (IRS). This application is known as Form 1023. It is essential to obtain 501(c)(3) status from the IRS to receive exemption from federal income tax.
4. Apply for state-level tax exemptions - Once approved by the IRS, you may then apply for tax exemptions at the state level, such as sales tax. You can do so by filing Form ST-5 with the Ohio Department of Taxation.
5. Obtain necessary permits and licenses - Depending on the nature of your nonprofit organization, you may be required to obtain permits or licenses to operate. For example, if you plan to serve food or sell goods, you must obtain a vendor's license from the Ohio Department of Taxation.
6. Comply with state and federal reporting requirements - To ensure compliance and maintain legal standing, nonprofit organizations must comply with various state and federal reporting requirements, including submitting annual reports to the Ohio Secretary of State and filing annual tax returns with the IRS.

To ensure your nonprofit organization is operating legally, it is best to consult with an attorney experienced in nonprofit law. They can help you navigate the legal requirements and provide guidance on any specific regulations or requirements that apply to your organization.