How to Begin a Nonprofit in Texas

Welcome to our Texas Nonprofit Startup Guidebook! If you&rsquore passionate about helping some others and have an strategy to provide your group, starting off a nonprofit is a great way to convert your eyesight into a truth. There are lots of different types of nonprofits – religious, academic, human service oriented, animal welfare, and extra. What all nonprofits have in prevalent is a aim on supporting other folks and benefiting their local community. You are genuinely committed to these targets so you are by now well on your way!

In accordance to the Countrywide Centre for Charitable Stats, there were being over 96,000 nonprofit organizations in Texas in 2012. Before you begin a new nonprofit, make guaranteed you have recognized an unmet will need in your community and know that there are not any present companies serving your bring about. If an additional corporation exists, contemplate working with each other, as that might be a much better way to make an affect in your local community and use existing sources.

When you are all set to begin your nonprofit, program to integrate and apply for 501(c)(three) status, as these are important actions to entirely reach your goals. As a 501(c)(3) nonprofit, you will be in a position to use for grants and settle for donations, be exempt from federal company profits tax, and limit the legal responsibility of your firm&rsquos officers and directors. Most importantly, you will achieve believability and legitimacy for your cause, instilling the public with self-assurance in your organization.

This tutorial will stroll you by means of the basic ways to start out your nonprofit in Texas. Let&rsquos get started off!


  1. Identify Your Organization

    Your business&rsquos title establishes its brand and is also critical for incorporating with the point out. The authorized identify of your nonprofit company may not conflict with any other firm registered in the point out. Make certain the identify is out there and meets point out demands.

    Name Look for:Texas Secretary of Point out – Corporations Portion&nbsp

    &nbspName look for

    Not demanded.&nbspTexas Small business Organizations Code &sect5.054&nbspand&nbsp

    Texas Small business Companies Code c22

  2. Recruit Incorporators and First Administrators

    The incorporator is the particular person who indications the Content of Incorporation for your nonprofit. You will will need at minimum one, but can have additional than a person. Directors make up the governing physique of your nonprofit company and are stakeholders in your firm&rsquos function and accomplishment. You&rsquoll want to discover 3, unrelated people to fulfill IRS requirements. hop over to this website will also want to be aware of any age or residency specifications.

    Texas director requirements:

    • Amount: minimal 3

    • Qualifications: None. No residency necessity. No membership prerequisite.

    • Expression: until successor is elected, appointed, or specified and qualified

    • Quorum: the greater part

    • Committee: A management committee must have two folks and the the greater part directors (some exceptions).

    Texas officer necessities:

    • A president and a secretary are needed.

    • Two or additional workplaces may possibly be held by the identical unique, other than for president and secretary.

  3. Appoint a Registered Agent

    A registered agent is accountable for obtaining legal notices on behalf of your business. The appointed registered agent ought to be physically found in the point out and maintain an office that is open through typical business enterprise hours. As a nationwide registered agent, our assistance is made to receive your authorized files and give safe obtain to these documents via your on the internet account. Our area&nbspTexas registered agent&nbspoffice is situated in Austin, TX. We provide&nbspregistered agent company&nbspindependently or as part of our&nbspnonprofit formation packages.

  4. Put together and File Article content of Incorporation

    Your nonprofit&rsquos content articles of incorporation officially mark the generation of your organization. They document in which and when the business was formed and capture other facts essential to confirm its existence. Though necessities for language change from point out-to-state, there are some simple provisions that the IRS will glimpse for when you apply for 501(c)(three) exemption. It is important to personalize the articles or blog posts for your business and make guaranteed you fulfill the point out and IRS needs. Conference these necessities from the begin will aid stay clear of acquiring to make amendments later or chance having your 501(c)(three) application turned down. Some states will also require you to publish your article content of incorporation, so be conscious of any deadlines and publishing directions.

    Company:Texas Secretary of State – Organizations Area&nbsp

    Kind 202: Certificate of Formation for a Nonprofit Company

    Submitting Process:

    Mail, fax, in-man or woman

    Agency Charge:

    $twenty five


    three3-5 company times by mail or fax.


    Texas Statues – Company Companies Code – Title 2: Firms – Chapter 22: Nonprofit Corporations


    Post initial and 1 duplicate. The secretary will return evidence of submitting and a file-stamped copy of the doc.

  5. File Initial Report

    Following filing article content of incorporation, you will have to file an preliminary report.

    NOT Expected


  6. Attain an Employer Identification Range (EIN)

    This one of a kind, nine-digit selection is assigned by the IRS to identify your nonprofit. All kinds of nonprofits will utilize for an EIN, not only those people that employ the service of personnel. You will use your EIN to open a bank account, utilize for 501(c)(three) position, and submit 990 returns to the IRS.

    Agency:Inside Profits Support (IRS)&nbsp

    IRS Sort SS-four

    Submitting Method:

    Mail, cellular phone, fax, or&nbsponline.

    IRS charge:



    Straight away on the internet or by cellular phone. four enterprise times by fax. 4-five weeks by mail.


    The IRS web page is only out there during selected hours. Print your EIN just before closing your session. For further direction, see&nbspIRS Pub 1635: Comprehension Your EIN.

  7. Retailer Nonprofit Information

    As you launch your nonprofit, you will acquire a range of official files. Arranging these paperwork in one particular put will conserve you headaches down the highway. You will quickly have numerous objects to hold in your documents which include your EIN letter, bylaws, meeting minutes, 501(c)(3) willpower letter, and more.

  8. Establish First Governing Paperwork and Policies

    Your&nbspbylaws&nbspare the governing doc for your nonprofit. They provide as your corporation&rsquos working guide and should be reliable with your content of incorporation and the law. When your Board of Directors fulfills for the 1st time, you&rsquoll critique and ratify the bylaws and they will be a roadmap for governance from there.

    At the exact time, you&rsquoll also want to produce and undertake a&nbspconflict of desire coverage. A conflict of curiosity is when someone in a vital situation in your nonprofit has competing pursuits and is generating choices that could profit by themselves to the hurt of the corporation. Particular pursuits should really be set aside and organizational passions prioritized. If a conflict of interest does arise, it really should be disclosed immediately.

    Your application to the IRS for 501(c)(three) exemption will have to have that each the bylaws and the conflict of desire coverage are approved and adopted. Once hop over to this site &rsquove been adopted, safely and securely retail outlet them in your Nonprofit Data Package.

  9. Keep Organizational Assembly of the Board of Directors

    The initial organizational conference of your Board of Directors will be amazingly successful. At this conference you will approve the bylaws, undertake the conflict of interest plan, elect directors, appoint officers, and approve resolutions these types of as opening the group&rsquos financial institution account. Vital conclusions are staying built so be certain to report them in the conference minutes.

  10. Get Texas Condition Tax Identification Numbers/Accounts

    The Texas Comptroller oversees assortment of extra than 60 point out and local taxes, fees, and assessments. They do not give a consolidated software. Utilize for specific tax accounts / licenses / permits as expected.

    Advice:Overview of Texas Taxes
    Post to:Texas Taxes – Texas Comptroller of General public Accounts

    Sorts:Texas Tax Kinds
    Filing System:Mail or&nbsponline with WebFile
    Rate:May differ based on tax accounts/licenses/permits needed.

  11. Utilize for 501(c)

    Implementing for 501(c) tax exemption can come to feel like the most complicated move in bringing your nonprofit dream into fact, but getting tax exemption will come with several benefits. You will be ready to use for grants and develop your fundraising achievement in addition to becoming exempt from IRS cash flow tax. 501(c) is the chapter of the Internal Income Code that regulates nonprofit corporations. Like other individuals, you may possibly be most familiar with 501(c)(three) nonprofits, together with charities and foundations. 501(c)(three) nonprofits use applying Type 1023 or Kind 1023-EZ. Overview the requirements for each individual software and make guaranteed you fulfill the eligibility necessities set out by the IRS. Other varieties of nonprofits, like 501(c)(4)s and 501(c)(6)s, apply using Variety 1024. Following examining and approving your software, the IRS will return a Resolve Letter officially recognizing your exemption.

    Completing the federal application for tax exemption is drastically a lot easier with the assistance and support of a skilled. Uncover a person with the experience to guarantee the suitable software is currently being applied and is done properly. A very well-geared up software usually takes time, in excess of a hundred several hours by IRS estimates, so place by yourself on the route to good results by finding a specialist to stroll along with you in the journey – from start to tax-exempt end!

    Agency:Internal Revenue Assistance (IRS)&nbsp

    IRS Form 1023,&nbspIRS Sort 1023-EZ, or&nbspIRS Type 1024


    IRS Directions for Type 1023,&nbspIRS Guidance for Kind 1023-EZ, or&nbspIRS Guidelines for Type 1024. &nbspAlso see direction&nbspIRS Pub 557: Tax-Exempt Position for Your Group.

    Submitting Technique:


    Agency Price:

    $275 for businesses filing Form 1023-EZ and $600 for corporations submitting Form 1023.


    1023-EZ common: &lt1 month. 1023 regular: 3-6 months.


    Tax-Exempt in two Months!

    Obtain the circumstance research&nbspof how our shopper, Reform It Now, attained 501(c)(three) tax exemption in only two months working with the new IRS Sort 1023-EZ!

    From submitting the 1023EZ on August 1st to receipt of the resolve letter on August 14th is, in my humble impression, simply just breathtaking and I dare say, ONLY Harbor Compliance could have reached that.

    Dr. Bob A.Reform It Now, Inc.

  12. &nbsp

    You&rsquove designed it! You turned your passion into a legit nonprofit company exempt underneath IRS 501(c) and are benefiting your community. That good basis on which you constructed your organization demands ongoing routine maintenance. Investing in protecting compliance with all of the governing administration companies is an ongoing accountability and motivation required to make sure your vision proceeds extended into the upcoming. Examine out our compliance manual to understand much more!

    The moment you have registered your nonprofit for each the ways outlined earlier mentioned, you will need to have to keep compliance with all of the federal government businesses. Staying present with the IRS and condition needs is an ongoing accountability. Continue on looking through our&nbspTexas nonprofit compliance information&nbspto study a lot more!

  13. Use for Point out Tax Exemption(s)

    With your IRS Resolve Letter in hand, make sure you familiarize by yourself with your point out&rsquos necessities for recognizing your nonprofit&rsquos tax-exempt standing. This is an region where specifications fluctuate point out-by-condition. Several states issue their very own tax-exempt certification that can be made use of for product sales and use tax applications, but it may perhaps have to have software and periodic renewal.

    To file to obtain exemption from point out earnings tax:

    Agency:Texas Comptroller&nbsp

    AP-204, AP-205, AP-206, AP-207, or AP-209

    Agency Rate:



    Texas condition law permits 501(c)(3) exempt and several other forms of organizations to be exempt from paying out profits tax, hotel occupancy tax, and franchise tax.

    To file to attain Revenue Tax Exemption:

    Agency:Texas Comptroller&nbsp

    Variety AP-205-two: Application for Exemption – Charitable Corporations

    Company Rate:



    Texas residence tax exemption can be utilized for by filing the&nbspappropriate tax residence exemption sort&nbspwith your nearby tax appraisal district.


  14. Sign up for Charitable Solicitation (Fundraising)

    This is a further area in which legal guidelines vary from point out to point out, but most states require any nonprofit soliciting donations to sign-up to do so on an once-a-year basis. This means registering in the state prior to soliciting any resident of that state. Registering in your house point out is necessary, but you might also want to sign up other states depending on the scope of your organization.

    Texas Charitable Solicitation Registration

    Agency:Texas Secretary of Point out – Registrations Device&nbsp
    International Qualification is Prerequisite:No
    Bond Necessities:

    Veteran&#39s companies have a bond prerequisite of $five,000 if the solicitor solicits in only 1 county, $ten,000 if the solicitor solicits in a lot more than a single county but much less than six counties, or $25,000 if the solicitor solicits in six or additional counties.

    Registered Agent (Distinctive Company) Expected?No

    Automated Exemption

    Much more Particulars

    Initial Registration

    More Specifics

    Registration Renewal

    Additional Information

    Supplemental Reporting

    Veterans Firm Once-a-year Report

    Much more Aspects

    To fundraise nationally or on the web, remember to see our&nbspFundraising Compliance Guide. Our companies handle your preliminary, renewal, and exemption filings in every point out.

  15. Receive Other Organization Licenses &amp Permits

    Operating your nonprofit company legally also usually means securing all relevant licenses and permits. The selection of local, condition, and federal needs is vast. Obtain methods like the&nbspSmall Organization Administration Business License &amp Permit search-up resource&nbspand research by your small business form and locality.