Kickstart your nonprofit corporation
We've helped over 100,000 nonprofit organizations get started—let us help you form yours, too. As a nonprofit corporation, you can apply for grants, get 501(c)(3) tax-exempt status if eligible, and protect your assets.
Starts at $99 + filing fees. These costs are often tax deductible.
Starts at $99 + filing fees. These costs are often tax deductible.
Start my nonprofit
Pick the package that fits your needs
Economy
$99
+ state filing fees
LegalZoom 10-14 days standard processing time
Includes:
Preliminary name clearance
Articles of incorporation filing with your state
for missing info, discrepancies, and more
1-800Accountant consult to discuss tax savings services.
Standard
$239
+ state filing fees
LegalZoom 5-day priority processing*
Includes Economy package, plus:
Deluxe founder's kit with your formation documents printed on archival paper, plus a personalized binder and notebook
Corporate minutes forms to record formal meetings and actions
Fastest Service
Express Platinum
$359
+ state filing fees
LegalZoom 1-2 days expedited processing* and express shipping
Includes Standard package, plus:
Faster filing of your articles of incorporation with the state
Expedited federal tax ID (EIN)
Delivery of your package 2-3 business days after everything is finalized
14-day trial of legal plan subscription with unlimited 30-minute attorney consultations about new legal topics†
Why use LegalZoom to set up your nonprofit?
Get started in minutes
You can register your nonprofit organization in 3 easy steps with the leader in online business formation. We'll assemble your documents and file them directly with the Secretary of State.
Set it up right
Our tools offer step-by-step guidance to help you launch your nonprofit. We can file it with the state and apply for tax-exempt status as a 501(c)(3) organization at the same time.
Get the help you need
You get lifetime customer support and 100% customer satisfaction guaranteed. And we offer access to a network of attorneys to guide your launch and help your nonprofit grow.
How to start a nonprofit with LegalZoom—it's easy!
- Tell us your nonprofit name
- Answer some questions online
- We'll complete and file your paperwork
We can help you with the rest, too!
- Get an EIN (Employer Identification Number)
- File for 501(c)(3) tax-exempt status
- Obtain a list of required licenses
What is a nonprofit?
Nonprofit organizations are groups organized for a good cause rather than for profit. None of a nonprofit organization's income is distributed to its members, directors, or officers.
What causes are eligible for a tax-exempt designation?
A nonprofit designation and a tax-exempt status are given only to nonprofit organizations that further certain causes. For example, organizations with religious, scientific, charitable, educational, literary, sports competition, cruelty-prevention, or public safety purposes would qualify.
Why start a nonprofit?
Get tax breaks
You're eligible to apply for state, federal, and other tax exemptions.
Start my nonprofit
Apply for 501(c)(3) status
Contributions to certain types of qualifying nonprofits are tax deductible.
Protect your assets
Members and directors are shielded from personal liability for the nonprofit's actions.
How to start a nonprofit in 5 steps
Conduct a needs assessment
Describe your nonprofit's mission, strengths, weaknesses, and the need it will fill to determine how to serve your community.
Complete a market analysis
Plan outreach, fundraising, and volunteer support by analyzing the market opportunity.
Create a business plan
Include services, community impact, business operations, marketing, and sources of funding.
Form your nonprofit
Make it official with a name, a business structure, filing with the state, and getting an EIN when you form your nonprofit with us.
Apply for tax-exempt status as a 501(c)(3) nonprofit if eligible
Let us know if you'd like us to file your IRS application form for you.
Advantages and disadvantages of a nonprofit
Advantages of a nonprofit
- Work on solving issues, creating change, and giving back
- Obtain Internal Revenue Code 501(c)(3) tax-exempt status if eligible
- Qualify for certain government grants and loans
- Accept tax-exempt funds from another nonprofit through fiscal sponsorship
- Pay yourself a fair salary as part of operating expenses
Disadvantages of a nonprofit
- Maintain records of donations, grants, funding, operational expenses, and finances
- File an annual information return with the IRS to maintain your tax-exempt status
- Stay compliant with bylaws that dictate how the nonprofit must be governed
- Disclose salaries and finances for public inspection
What qualifies as a 501(c)(3) nonprofit?
The main requirements are to operate exclusively for religious, charitable, scientific, or educational purposes (among others) and to file annual reports with the IRS.
What is a 501(c)(3) not allowed to do?
Organizations can lose their 501(c)(3) tax exempt status by distributing earnings to shareholders, engaging in political activity or substantial lobbying, or failing to pursue their stated charitable or other qualifying purpose.
Start my nonprofit
What is the difference between a nonprofit and a 501(c)(3) organization?
Nonprofits are organized for purposes other than generating profit and they don't distribute any income to their shareholders. 501(c)(3) refers to a specific tax status in which an organization does not have to pay federal income tax and can accept tax-exempt donations from the public.
Nonprofit (without 501(c)(3) status)
501(c)(3) organization
Paperwork:
Save time and money by not applying for tax-exempt status with the IRS.
File annually with the IRS to document compliance for retaining tax-exempt status.
Donations/grants:
Can't accept tax-deductible contributions or grants.
May collect tax-deductible donations and grants.
Earnings:
Pay federal taxes on earnings.
Earn income that is federally tax-exempt.
Undecided if you'd like us to file for 501(c)(3) status?
You can always start your nonprofit now and decide later if you want to apply for 501(c)(3) status.
Start my nonprofit
What is the difference between an LLC and a nonprofit corporation?
In most cases, nonprofits are formed as a corporation, but an LLC can also be a nonprofit. Incorporating helps protect your personal assets, builds credibility with potential donors, and unlocks funding reserved for officially formed nonprofit corporations.
Nonprofit corporation
Nonprofit LLC
Structure of nonprofit:
Operate within a rigid structure, including requirements for shareholders, directors, and managers.
Choose an organizational structure that best fits your needs, with the flexibility to make changes.
Requirements for starting:
Follow basic steps—choose a name, set up a board of directors, file incorporation documents, get an EIN, and obtain any licenses.
Can be complicated—additional steps are required vs. starting a nonprofit corporation. Plus, nonprofit LLC's are not available in all states.
How to be tax-exempt:
File Form 1023 with the IRS to apply for tax-exempt status under section 501(c)(3).
Elect for LLC to be taxed as a corporation. Then file Form 1023 with the IRS to apply for tax-exempt status under section 501(c)(3). Tax-exempt status is available only if all members of the nonprofit LLC are themselves 501(c)(3) tax-exempt organizations.
What are the 3 types of nonprofits?
Nonprofit corporation
The most popular type of nonprofit, these nonprofits can qualify as tax-exempt, are generally protected from liability, and are eligible for grants.
Start my nonprofit
Nonprofit LLC
A nonprofit LLC can only be recognized as a 501(c)(3) organization if all of its members are 501(c)(3) nonprofit organizations.
Nonprofit association
An association is when two or more people come together to benefit the public without filing legal paperwork or forming an official legal structure.
Frequently asked questions
How do nonprofit owners make money?
Nonprofits receive revenue through sources like grants, donations, and membership programs. They use their revenue to pay for expenses needed to operate their business, including employee salaries.
Are there other names used for a nonprofit?
There are a variety of terms used for nonprofits. You may see a nonprofit organization called an NPO. If an organization serves a group of members rather than the general public, it may be called a non-for-profit organization. An example of a nonprofit institution is a public university. Sometimes you'll see tax-exempt organizations casually referred to as "501c3 nonprofits."
What is the difference between a nonprofit and for-profit corporation?
A key difference is that a for-profit company can distribute earnings to owners or shareholders, while a nonprofit is restricted from doing so. It's crucial to maintain tight controls over an organization's net earnings and finances to maintain this distinction.
What is a disadvantage of a nonprofit?
Because nonprofit corporations have boards of directors to consult, nonprofits can be slower to act on opportunities than nimble startups.
Is a nonprofit the same as a corporation?
A nonprofit may be formed as a corporation, but it is possible to create other nonprofit entities, such as a nonprofit LLC.
What is the difference between an LLC and a 501(c)(3) organization?
An LLC is a type of business legal entity, while the term 501(c)(3) refers to any organization that's been granted tax-exempt status by the IRS under that specific section of the Internal Revenue Code.
What does 501(c)(3) actually refer to?
It's a section of the Internal Revenue Code—26 U.S.C. § 501(c)(3)—that makes qualifying organizations exempt from federal income tax and allows them to accept tax-deductible donations.
Which groups qualify for 501(c)(3) nonprofit status?
In addition to satisfying various IRS requirements, eligible organizations must generally be involved in religious, charitable, scientific, public safety, literary, or educational activities.
Which groups don't qualify for 501(c)(3) nonprofit status?
Civic leagues, homeowners associations, social welfare organizations, and political organizations are common types of nonprofits that don't qualify for 501(c)(3) status. However, they may qualify for a tax exemption under other sections of the Internal Revenue Code.
How do I keep my tax-exempt status?
Maintaining your tax-exempt status requires year-round compliance, including recording all finances and expenses, remaining compliant with nonprofit bylaws, and filing Form 990 annually with the IRS.
What's the difference between a public charity and a private foundation?
Both public charities and private foundations have 501(c)(3) status, but how they get funding differs. Public charities typically get funding from the public and government. Private foundations typically get donations from a few individuals, a family, or a corporation. Regardless of the funding source, none of the earnings can be distributed to private shareholders or individuals.
Ready to start your nonprofit?
Start my nonprofit
What our customers are saying
I am absolutely impressed with LegalZoom's ability to complete my nonprofit business and 501(c)(3) in such a short period of time.
—Johnnie S., nonprofit customer
Professional support throughout every step ... Superior quality of providing important documents in an attractive binder ... Best way to start a nonprofit!
—Dan N., nonprofit customer
Can't praise this process enough ... LegalZoom took a lot of the guesswork away and gave me clear direction and instructions.
—Heath J., nonprofit customer
Questions?
Call an agent at (866) 738-2618
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Weekends: 7 a.m.-4 p.m. PT
Weekends: 7 a.m.-4 p.m. PT
* We’ll process your paperwork and then send it to the Secretary of State, who’ll form your business. LegalZoom processing time is based on business days and doesn’t include Secretary of State processing times, which can vary. State filing fees may include expedited service, if applicable.
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