Before we get started with incorporating as a nonprofit we should discuss on this forum, what kind of decision-making process we want to have and if we want to go ahead with forming a nonprofit.
If we decide to go ahead and assuming Alex will be the Incorporator, we will need to determine who will be the initial Directors and where assets go in case of dissolution. We have the option to set it up for a limited number of years or indefinitely; in either case we would be able to dissolve it if necessary. Incorporating as a nonprofit is a fairly simple process, and can be done online for $50, offline by mail for $30.
Once registered as a nonprofit, we would need to create Bylaws, which should include a meeting schedule, procedure for the election of officers and directors, and other administrative details.
We would need to set up a Corporate Records Binder to hold the Articles of Incorporation, Bylaws, and Meeting Minutes and a bank account.
Unless we start collecting more than $50K in annual donations we wouldn’t need to register with the Washington State Charities Program. Similarly, we probably don’t need to rush registering with the IRS as a 501(c)(3) but when we do, we can use Form 1023-EZ, “Streamlined Application for Recognition of Exemption Under Section 501(c)(3) of the Internal Revenue Code.”
Here is a list of steps to take after registering as a nonprofit in Washington:
a. Write Bylaws
i. Meeting schedule
ii. Election of officers and directors (can also be called trustees)
b. Create corporate records binder to hold the Articles of Incorporation, Bylaws, Meeting minutes, and Operating Manual
d. Set up accounting and tax period and open a bank account.
2. Federal Tax Exemption as a small nonprofit (assets < $250K, annual gross < $50K) – since our donations and budget needs (at least initially) are going to be very small, we can hold off on this since we won’t have enough income to pay taxes.
a. Form 1023-EZ, “Streamlined Application for Recognition of Exemption Under Section 501(c)(3) of the Internal Revenue Code”
3. COOPERATIVE ASSOCIATION
a. Requires a minimum of three directors
I am trying to find out more information on setting it up as a cooperation. Also I am fine with being one of the initial directors.