How to Start a Nonprofit in Utah

Step 4: Hold and organizational meeting and draft bylaws

The organizational meeting is where your initial board of directors adopts bylaws and appoints officers or members. If you haven’t yet elected directors, the incorporator(s) can hold the meeting to adopt bylaws, elect directors, and appoint officers instead. 

Bylaws are your organization’s internal operating rules. They create a framework of rules and practices that your board can return to every time a governance question comes up. Utah doesn’t require nonprofits to file bylaws with the state, but you’ll need them to file for tax-exempt status with the IRS. 

You can customize your bylaws to fit your organization’s needs, but they should, at minimum, address the following:

• Organization name and principal office. State the nonprofit's legal name and its primary place of business in Utah.
• Mission or purpose statement. Echo the purpose language in your articles of incorporation. 
• Membership rules. If the organization has members, explain how members are admitted, their voting rights, and removal process. 
• Board of directors structure. Define the minimum number of directors (at least three by Utah law), the election process, length of terms, and removal procedures.
• Officer titles, duties, and election process. At a minimum, define a president (or chair), secretary, and treasurer. Utah requires at least one officer (generally the secretary) be responsible for recording meeting minutes for board meetings. 
• Meeting requirements. Specify how often the board meets, how much advance notice is required, and what constitutes a quorum (the minimum number of directors present for a meeting to take place and its actions to be binding).
• Conflict of interest policy. The IRS expects a written policy that requires board members and officers to disclose personal or financial interests in any transaction the organization considers. You must indicate whether a conflict of interest policy is in place in your 501(c)(3) application.
• Amendment procedures. Include a clear process for how the board can amend the bylaws.
• Dissolution procedures. Include a dissolution clause that’s consistent with your articles. State that any remaining assets will be distributed for charitable purposes.

You can also work with a business attorney or use an online legal service to help ensure your bylaws cover all the important points. Your bylaws will often act as a supporting document when registering with state and federal agencies, so it's important to create a comprehensive document that adds credibility to your mission. 

Step 5: Get an employer identification number for your Utah nonprofit

A federal employer identification number (FEIN or EIN) is a nine-digit ID that the IRS assigns businesses to identify them for tax purposes. You’ll need an EIN to file for tax-exempt status, hire employees, and apply for grants. Some banks may also require an EIN to open a bank account. It’s completely free to obtain an EIN through the IRS website. 

You can also use LegalZoom’s EIN filing service if you want someone to take it off of your plate. Keep in mind, an EIN doesn’t make your organization tax-exempt. It's an identification number that the IRS, banks, and other agencies use to identify your organization. 

Step 6: Apply for 501(c)(3) federal tax-exempt status

Now you have an EIN, you’re ready to apply for tax-exempt status with the IRS. This is the next major step that can make donations tax-deductible and exempt your organization from federal income tax. The IRS grants 501(c)(3) status through one of two main forms.

Form 1023 is the more complex application. 

• Who qualifies: Larger exempt organizations that don’t qualify for the simpler form. 
• Filling fee: $600.
• How to file: Submit the completed form online through www.pay.gov.
• Processing time: Generally, around six months.
• Other requirements: Articles of incorporation and bylaws. 

Form 1023-EZ is a simplified version of the 1023 for smaller organizations. 

• Who qualifies: U.S. exempt organizations whose current or projected gross receipts don’t exceed $50,000/year and total assets value at $250,000 or less. 
• Filling fee: $275.
• How to file: Submit the completed form online through www.pay.gov.
• Processing time: Generally, about a month.
• Other requirements: Articles of incorporation. 

After the IRS reviews your application, you’ll receive a determination letter approving your status, a request for additional information, or a rejection letter. If you’d like help filing the application, LegalZoom’s 501(c)(3) application service can guide you through the Form 1023-EZ process. 

Step 8: Apply for Utah state tax exemptions

501(c)(3) status doesn't automatically exempt your nonprofit from Utah state taxes. You’ll have to apply separately with the Utah State Tax Commission to qualify for state exemptions.

Here are some of the main tax exemptions for Utah nonprofits:

• Utah income tax exemption. Use Form TC-161 to apply for exemptions from corporate franchise or income tax in Utah. You’ll need a copy of your IRS determination letter to apply.
• Utah sales tax exemption. Most charitable nonprofits will use Form TC-721 to apply for sales and use tax exemptions. 
• Utah property tax exemption. If your nonprofit owns and uses property exclusively for charitable, religious, or educational purposes, it may be exempt from property tax. Apply through your local county clerk’s office. 

You can apply for most of these exemptions through Utah TAP, the State Tax Commission’s online filing portal. 

How much does it cost to start a nonprofit in Utah?

While the full cost of starting a nonprofit in Utah will vary based on the needs, location, and size of your organization, these are some of the basic costs that you should be aware of.

• Articles of incorporation: $59
• Name reservation (optional): $22 
• EIN: Free or for a fee using a service like LegalZoom
• Form 1023: $600
• Form 1023-EZ: $275

Therefore, the total basic initial cost to start a nonprofit in Utah ranges from around $334 to $659. Professional assistance would increase these numbers, but is often worth it for the peace of mind and accuracy. 

Ongoing compliance for Utah nonprofits

Once your nonprofit is off the ground, it's important to stay compliant with federal and state laws so that you can keep making a difference.

Federal Form 990 filing requirements

Most section 501(c)(3) public charities need to file annual reports with the IRS. Which form you file depends on your organization's size.

1. Form 990-N (e-Postcard): Public charities with gross receipts normally under $50,000.
2. Form 990-EZ: Public charities with gross receipts under $200,000 and total assets under $500,000.
3. Form 990 (full): Public charities with gross receipts of $200,000 or more, or total assets of $500,000 or more.

The deadline for all three is the 15th day of the 5th month after your fiscal year ends (May 15 for a December 31 year-end). If you still haven’t received your determination letter from the IRS by this time, file Form 990 anyway.

Utah annual report/renewal

Utah nonprofit corporations must file an annual report with the Utah DCCC each year. The main purpose of this report is to update the state on your organization’s basic information, such as registered agent, director, and officer details. 

• When to file: By the end of the nonprofit’s anniversary month. This is the month that the nonprofit originally formed with the DCCC. 
• Where to file: Online using your UtahID. 
• What you’ll need: A copy of your organization’s most recent 990 form, if you file 990s with the IRS. 
• Filling fee: $18.

How to start a nonprofit in Utah with LegalZoom

LegalZoom makes it easy for mission-driven founders to establish their charitable organization and secure tax-exempt status. We are a one-stop-shop for nonprofit formation and compliance, from filing articles of incorporation with the Utah Division of Corporations and Commercial Code, to handling your Form 1023-EZ 501(c)(3) tax-exempt status application with the IRS and managing your ongoing compliance requirements. 

We stand behind our work with a 100% accurate filing guarantee. Our technology, combined with our decades of experience, ensures your nonprofit is formed accurately and in compliance with Utah state and federal regulations.

FAQs about starting a nonprofit in Utah

How long does it take to start a nonprofit in Utah?

It’s wise to plan for six to 12 months from your first filing to full recognition. Here’s a breakdown of some of the timelines.

• Articles of incorporation: Generally, 2–4 business days
• EIN application: Typically same day
• Form 1023-EZ: Generally around one month
• Form 1023: 3–12 months, but typically around six 

Can I pay myself if I run a nonprofit?

Yes. Nonprofit founders and executives can receive reasonable compensation for their services. However, the IRS does prohibit compensation that’s excessive or structured to benefit insiders at the expense of the mission. 

Does a Utah nonprofit need to register with the Utah Attorney General?

No, but you might see outdated information on other websites. As of 2025, nonprofit organizations no longer need to register with the Utah Attorney General or the Utah Division of Consumer Protection. However, nonprofits do need to register with the Division of Corporations and Commercial Code and annually update the Division with the most recent copy of their 990 filed with the IRS. 

What is the difference between a nonprofit corporation and a 501(c)(3)?

A nonprofit corporation is a legal entity, governed by state law, that you can form by filing a certificate of incorporation or articles of incorporation, depending on the state. 

501(c)(3) is a federal tax designation that the IRS grants qualifying organizations. It exempts those organizations from federal income tax and allows donors to deduct contributions. 

Forming a nonprofit corporation doesn’t automatically grant your organization 501(c)(3) status. You must apply for each separately.