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What are the requirements for starting a nonprofit organization in Illinois, and what legal documents do I need to file?

Picture of Chris Battis By   ·  1 minute read

Starting a Nonprofit Organization in Illinois

There are several requirements that must be met and certain legal documents that need to be filed to start a nonprofit organization in Illinois. Here is a breakdown of the process:

  1. Choose a name for the nonprofit organization: The name must not be identical or confusingly similar to any other name already on file with the Illinois Secretary of State.
  2. Choose a registered agent: The registered agent must be located in Illinois and be available during regular business hours to receive any legal notices or other important communications on behalf of your organization.
  3. Select the Board of Directors: The board of directors is responsible for overseeing the nonprofit organization, making important decisions, and ensuring that the organization is fulfilling its mission.
  4. Draft and file Articles of Incorporation: This document establishes your nonprofit organization as a legal entity in the state of Illinois. It must include the organization's name, registered agent, and purpose. You will also need to include a statement that the organization is not for profit.
  5. Apply for a Federal Tax ID Number: This number is also known as an Employer Identification Number (EIN) and is issued by the Internal Revenue Service (IRS). It is used to identify your nonprofit organization for tax purposes.
  6. Apply for tax-exempt status: This step is optional but recommended. To apply for tax-exempt status, you must file Form 1023 with the IRS. If approved, your organization will be exempt from federal income tax.
  7. File an Annual Report: Each year, your organization must file an Annual Report with the Illinois Secretary of State. The report includes important information such as the organization's officers and directors, registered agent, and address.

Overall, starting a nonprofit organization in Illinois requires careful attention to detail and a thorough understanding of legal requirements. If you have any questions or concerns about the process, it is always recommended to seek the advice of a licensed attorney.