What legal steps do I need to take to start a non-profit organization in Illinois?
To start a non-profit organization in Illinois, there are several legal steps that must be taken:
- Choose a name: First and foremost, pick a name for your non-profit organization that is not already in use in Illinois. Check the Illinois Secretary of State's website to ensure the name is available.
- Draft Articles of Incorporation: Create a document that includes the name of the organization, its purpose, its registered agent and address, and any other required information. The Illinois Secretary of State's website provides a template for this document that can be used as a guide.
- File Articles of Incorporation: The Articles of Incorporation must be filed with the Illinois Secretary of State along with a filing fee. The fee is currently $50.
- Obtain an Employer Identification Number: Non-profit organizations are required to obtain an Employer Identification Number (EIN) from the IRS. This is essentially a tax identification number for your organization. You can apply for an EIN online through the IRS website.
- Apply for tax-exempt status: Non-profit organizations are generally required to apply for tax-exempt status with the IRS. This involves completing and submitting Form 1023 or Form 1023-EZ, along with a filing fee. There are some exceptions to this requirement for smaller non-profit organizations.
- Obtain any necessary licenses and permits: Depending on the type of non-profit organization you are starting and the activities it will engage in, you may need to obtain licenses or permits from state or local authorities.
- Develop bylaws: The bylaws of a non-profit organization outline its internal governance structure, including how board members are elected, how meetings are conducted, and how the organization is managed.
It is important to note that these are the general steps that must be taken to start a non-profit organization in Illinois, but there may be additional requirements depending on the specific circumstances of your organization. It is also important to consult with a licensed attorney to ensure that all legal requirements are being met.