How To Register A Nonprfit In Michigan

How to Showtime a Nonprofit in Michigan

In that location are many good reasons tostart a nonprofit in Michigan, simply knowing the first few steps to take can be challenging.

We'll help y'all start a nonprofit and complete your501(c)(3) application in our How to First a Nonprofit in Michigan guide below.

Or, simply use a professional service:

Incfile (Starting at $0 + State Fees)

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Last Updated: 2022-03-28

Starting a 501(c)(3) Nonprofit in Michigan is Easy

To outset a 501(c)(3)tax-exemptnonprofit organization in Michigan, you must kickoffstart a Michigan nonprofit according to the rules of the land and thenapply for501(c)(3) status with the IRS.

Learn more almost 501(c)(iii) eligibility in our What is a 501(c)(3) guide.

Tocourse a 501(c)(iii) nonprofit system, follow these steps:

Pace 1: Proper name Your Michigan Nonprofit
Footstep 2: Choose Your Registered Agent
Step 3: Select Your Board Members & Officers
Step iv: Prefer Bylaws & Conflict of Involvement Policy
Step v: File the Manufactures of Incorporation
Footstep 6: Get an EIN
Step seven: Apply for 501(c)(iii)

Step one: Name Your Michigan Nonprofit

Choosing a name for your system is the beginning and most important pace in starting your nonprofit corporation. Exist sure to choose a proper name that complies with Michigan naming requirements and is easily searchable by potential members and donors.

To acquire more, read our How to Name a Nonprofit in Michigan guide.

i. Follow the naming guidelines:

The proper noun of yous option for your system must not include whatever words that suggest a purpose other than those that will be permitted by its Articles of Incorporation.

Read the official guidelines on naming a Michigan based nonprofit corporation.

2. Is the name bachelor in Michigan? Brand sure the name you desire isn't already taken past doing a name search on the State of Michigan Website.

3. Is the URL bachelor? We recommend that y'all check to see if your business name is available as a web domain. Even if you don't program to make a business website today, you may want to buy the URL in guild to prevent others from acquiring it.

Find a Domain Now

Registered your domain name? Adjacent, we suggest choosing a business organisation phone organization to help your nonprofit build authorization and trust. Telephone.com is our first pick due to its affordability and top-notch customer support. Try Phone.com today.

Step 2: Cull a Registered Amanuensis in Michigan

Your nonprofit is required to nominate a Michigan registered agent for your organization.

What is a Registered Amanuensis? A registered agent is an private or business organization entity responsible for receiving important legal documents on behalf of your business. Think of your registered agent every bit your concern' point of contact with the state.

Who tin can be a Registered Amanuensis? A registered agent must be a resident of Michigan or a corporation, such equally a registered agent service, authorized to transact business organization in Michigan. You may elect an individual within the company including yourself.

Pace three: Select your Directors & Officers

The directors of an organization come up together to class a board of directors. This board of directors is responsible for overseeing the operations of the nonprofit.

The president, secretary, and other members of nonprofit who take individual responsibilities and authorities are known as officers.

The organization structure of your nonprofit in Michigan MUST include:

At least 3 directors non related to each other
A president
A secretarial assistant
A treasurer

NOTE: One person may hold ii or more officer positions, however, if a document requires signatures of ii officers, information technology must be signed by two different people.

To learn more than about electing a Michigan nonprofit board of directors, read our total guide.

Step 4: Adopt Bylaws & Conflict of Interest Policy

To be eligible to apply for 501(c)(3) status, your nonprofit is required to take the following two documents:

Bylaws
Conflict of involvement policy.

What are Bylaws? Bylaws are the rules outlining the operating procedures of the nonprofit.

What is a Conflict of Interest Policy? A Conflict of Interest Policy is the collection of rules put in identify to ensure that any decisions fabricated past the board of directors or the officers benefits the nonprofit and not individual members.

Note: The bylaws and conflict of interest policy must be adopted by the nonprofit during its first organizational meeting where the directors and officers are officially appointed.

Step 5: File the Michigan Articles of Incorporation

To register your nonprofit, y'all volition need to file the Articles of Incorporation with the Country of Michigan.

To ensure that your nonprofit is eligible to apply for 501(c)(3), in the articles of incorporation you must explicitly state the following:

ane. Purpose:

In society to authorize for 501(c)(3) status, the arrangement's purpose must explicitly exist limited to 1 or more of the following:

Charitable, Religious, Scientific, Educational, Literary, Fostering national/international apprentice sports competition, Preventing cruelty to animals/children, testing for public safety

ii. Dissolution:

You must explicitly state what the assets of the organisation will be used for, and what will happen to the assets if the organization is dissolved.

To exist eligible for 501(c)(iii) status, the assets of your organization must only ever exist used for purposes canonical under section 501(c)(iii).

Section 5 of this sample IRS document provides an case of these provisions required for 501(c)(3) eligibility.

Pick i: File online with the state of Michigan.

File Online

- OR -

Selection 2: File past mail or in-person.

Download Grade

State Filing Cost: $xx

Mail to:
Michigan Section of Licensing and Regulatory Affairs
Corporations, Securities & Commercial Licensing Bureau
Corporations Segmentation
P.O. Box 30054
Lansing, MI 48909

Submit in-person:
2501 Woodlake Circle
Okemos, MI
Telephone: (517) 241-6470

Step 6: Get an EIN

What is an EIN? The Employer Identification Number (EIN), or Federal Taxation Identification Number, is used to identify a business entity such every bit your nonprofit corporation. Information technology is substantially a social security number for your organization.

Why do I need an EIN? An EIN is required for the following:

To open up a business organization bank account for the company
For Federal and State tax purposes
To hire employees for the visitor

How do I get an EIN? An EIN is obtained from the IRS (free of charge) by the business owner after forming the visitor. This can exist done online or by mail. Cheque out our EIN Lookup guide for more information.

Step seven: Apply for 501(c)(iii) Status

Earlier a nonprofit can apply for 501(c)(iii) condition it must,

Elect at least iii directors non related to each other
File the Articles of Incorporation with the required provisions (As covered in Footstep v)
Prefer the bylaws and conflict of involvement policy
Have an EIN number

Once these four conditions have been met your nonprofit can apply for 501(c)(three) tax-exempt status by filing Grade-1023 online.

If your application is approved, the IRS volition send y'all a decision alphabetic character stating that your system is exempt from federal taxes under section 501(c)(3).

FAQ: Starting Your Nonprofit

When should an organisation apply for federal revenue enhancement exemption?

Form 1023 must be filed within 27 months from the end of the kickoff calendar month your system was created.

How long will it take for the IRS to process Form 1023/1023-EZ?

Before long after sending your application you lot should receive an acquittance of receipt of your application.

If your application is simple and complete, IRS will send your determination letter of the alphabet within 180 days for Form 1023

If you have not heard from them by that fourth dimension you tin can call (877) 829-5500 to ask about your application.

Detect out which nonprofit formation service is the best for you in our review on Startup Savant.

Important Steps After Forming a Nonprofit

Business organization Banking

1. Opening a concern banking concern account:

Separates your personal assets from your visitor's assets, which is necessary for personal asset protection.
Makes accounting and taxation filing easier.

To open up a depository financial institution account for your nonprofit corporation you will typically need the post-obit:

The EIN for the nonprofit
A re-create of the nonprofit's bylaws
A re-create of the Articles of Incorporation

Read our Best Minor Business Banks review to find the right bank for your nonprofit's needs.

two. Getting a concern credit card:

Helps you lot separate personal and business expenses.
Builds your company'due south credit history, which tin be useful to raise capital later on.

three. Hiring a business organisation accountant:

Prevents your business from overpaying on taxes while helping you avoid penalties, fines, and other costly tax errors
Makes bookkeeping and payroll easier, leaving you lot with more time to focus on your growing business
Helps finer manage your business concern funding and discover areas of unforeseen loss or actress profit

For more business accounting tools, read our guide to the all-time business bookkeeping software.

Get Insurance

Business insurance helps you manage risks and focus on growing your business organisation.
The most common types of business insurance are:

General Liability Insurance: A broad insurance policy that protects your concern from lawsuits. Most small businesses get full general liability insurance.
Professional Liability Insurance: A concern insurance for professional service providers (consultants, accountants, etc.) that covers against claims of malpractice and other business errors.
Workers' Compensation Insurance: A type of insurance that provides coverage for employees' job-related illnesses, injuries, or deaths.

Recommended:Inform your employees well-nigh their rights and stay compliant past posting labor law posters in your workplace.

Build a Concern Website

Creating a website is a big step in legitimizing your business. As a nonprofit, your website will be the primary way to share your organisation'south mission and story to supporters. Your website should exist a great resources for anyone interested in your nonprofit's upcoming events, goals, and news to help advance your cause.

Some may fright that creating a business website is out of their reach because they don't take whatever website-building experience. While this may accept been a reasonable fear back in 2015, web technology has seen huge advancements in the past few years that makes the lives of small business owners much simpler.

Properly Sign Legal Documents

Improperly signing a document as yourself and not as a representative of the business can leave yous open to personal liability.
When signing legal documents on behalf of your nonprofit, you lot could follow this formula to avoid problems:

Formal proper noun of your organisation
Your signature
Your name
Your position in the business every bit its authorized representative

Come across the paradigm below for an example:

This ensures that you lot are signing on behalf of your nonprofit and not as yourself.

Michigan Business Resources

Have a Question? Get out a Comment!

Source: https://howtostartanllc.com/form-a-nonprofit/michigan-nonprofit

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