How to Set Up a Non Profit Organization in Indiana
- 1). Review Title 23, Article 17 of the Indiana Code, which governs the creation of business organizations, including nonprofit organizations, in Indiana. It is available for free online. Just skimming the headings will give you an idea of the life cycle of a business organization: formation, naming, membership, creation of corporate documents, amendment of corporate documents, sale of assets, dissolution, and so forth. If you choose to delve more deeply into the relevant law, you will learn a great deal.
- 2). Choose a name, then make sure the name is acceptable by visiting the Business Services Online search engine at the Indiana Secretary of State's website. The name must not be the same as, or deceptively similar to, other corporate names on file with the secretary of state, and the name must indicate what kind of organization it is For example, a corporation's name should end in "Inc."
- 3). Ask at least three people who are committed to the mission of your nonprofit to serve on your board of directors. Indiana law requires that at least three directors serve on the board of any corporation.
- 4). Complete and file articles of incorporation with the Indiana Secretary of State. Sample articles of incorporation for a nonprofit are available on the website of the Indiana Secretary of State, Business Division.
- 5). Complete and file bylaws with the Indiana Secretary of State. The content of bylaws is not predetermined, but be sure to set out clear rules and procedures for the operation of your organization, so that everyone involved will always know what to do.
- 6). Submit a filing fee to the Indiana Secretary of State with your articles of incorporation and your bylaws.
- 7). Hold an initial meeting to appoint directors and officers and adopt the organization's bylaws. The board should establish a records book to use to store important documents. The board should always keep minutes of its meetings.
- 8). Visit the Internal Revenue Service's website to obtain an employer identification number. If your nonprofit will have employees, visit the Indiana New Hire Center to report that you have hired employees. File an online tax application with the Indiana Department of Revenue.
- 9). Establish the group as a tax-exempt nonprofit organization by registering with the IRS using Form 1023. Once the IRS formally declares you a nonprofit corporation, you will be able to apply to the state of Indiana for an exemption from state sales tax using Form NP-20A. Plan ahead--receiving your exemption may take 4-to-6 months.
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File a Business Entity Report with the state of Indiana every year. Make sure your organization behaves in accordance with its own bylaws and all of the laws governing nonprofit organizations or it could lose its nonprofit tax status and be declared a for-profit organization by the IRS or the state. - 11
Speak to a licensed attorney who is experienced with nonprofit corporations about any unanswered questions you may have.