To create a non-profit organization in Texas, you will need to follow several legal steps. Here are the following steps:
- Choose a name for your nonprofit organization: You must choose a unique name that is not already registered with the Texas Secretary of State's office. You can check the availability of your desired name by visiting the Texas Secretary of State's website.
- File the Certificate of Formation: To start a nonprofit organization in Texas, the Certificate of Formation must be filed with the Texas Secretary of State's office. The form can be found on their website or obtained from your attorney. The Certificate of Formation must include the name, address, and purpose of your non-profit organization.
- Obtain a Federal Tax Identification Number: You must obtain a Federal Tax Identification Number from the IRS. You will need this number to open a bank account, apply for grants or donations, and file tax returns.
- Draft and Adopt Bylaws: Bylaws are the rules and regulations that your non-profit organization will follow. These bylaws must be adopted by the board of directors.
- Appoint Directors and Officers: A non-profit organization must have a board of directors and officers. You should appoint people who are knowledgeable about your mission and have relevant skills and experience.
- Apply for Tax-Exempt Status: To obtain tax-exempt status from the IRS, you must file Form 1023 or Form 1023-EZ. This application must be filed within 27 months of the organization's formation.
- Apply for State Tax-Exempt Status: Non-profit organizations in Texas are not required to pay state franchise taxes if they are designated as a 501(c)(3) organization. To apply for this designation, you will need to fill out the Texas Comptroller Form 05-102.
It is essential to note that this advice is not exhaustive and additional steps may be necessary. It is advisable to consult an attorney who specializes in non-profit law to ensure that all legal requirements have been met.
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