California nonprofit 501(c)(3) rough requirements
The below table is meant only to give you a rough idea of what is required in order to create, operate, and dissolve an official 501(c)(3) California nonprofit organized for charitable purposes.
The NOLO and notes pages refer to How to Form a Nonprofit Corporation in California by Anthony Mancuso. The files mentioned are also provided by NOLO.
The URLs given below are liable to change.
|
Type |
Timing |
Status |
Cost |
Description |
|
Initial |
Step 1 |
Undone |
$0 |
Choose a Corporate Name. See notes pages 106-114. |
|
Initial |
Step 2 |
Undone |
$0 |
Prepare Articles of Incorporation. See files COVERLET and PUBARTS and notes page 119. (www.sos.ca.gov/business/corp/pdf/articles/corp_artsnd.pdf) |
|
Initial |
Step 3 |
Undone |
$30 |
File Articles of Incorporation. Make four copies. See notes pages 130-133. |
|
Initial |
Step 4 |
Undone |
$0 |
Prepare Bylaws. See file PUBBYLAW and NOLO pages 137-146. |
|
Initial |
Step 5 |
Undone |
$25 |
CA Form FTB 3500, Exemption Application. See notes on printed form. See NOLO chapter 8. (www.ftb.ca.gov/forms/2008/08_3500.pdf, 08_3500bk.pdf) |
|
Initial |
Step 6 |
Undone |
$750 |
IRS Form 1023, Application for Recognition of Exemption. See notes on printed form and instructions. See NOLO chapter 9. (www.irs.gov/pub/irs-pdf/f1023.pdf, i1023.pdf) |
|
Initial |
Step 7 |
Undone |
$0 |
Mail IRS Determination to CA Franchise Tax Board. See NOLO page 252. |
|
Initial |
By the First Meeting |
Undone |
$25 to $75 |
Set Up Corporate Records Book. For all nonprofit papers. Can also have a Corporate Seal made. See NOLO page 252. |
|
Initial |
After both exempt letters |
Undone |
$0 |
Conduct First Meeting. Prepare minutes before meeting. See NOLO files MINUTES and WAIVER and NOLO pages 259-268. Creates The Grassroots Network as an official nonprofit. |
|
Initial |
After First Meeting |
Undone |
$0 to $50 |
Get Corporate Bank Account. Minimum of two cosigners. |
|
Initial |
After Articles Filed (AF) |
Undone |
$0 |
IRS Form SS-4, Application for Employer Identification Number. May do online after officially incorporated. (www.irs.gov/pub/irs-pdf/fss4.pdf, iss4.pdf) |
|
Initial & annual |
By 30 days of $, by 4½ of ETY† |
Undone |
$25, + or - |
CA Form CT-1, Initial Registration. Attorney General should send form. CA Form RRF-1, Annual Registration. (www.ag.ca.gov/charities/forms.php) |
|
Initial and every two years |
By 90 days of AF, by AF month |
Undone |
$20 |
CA Form SI-100, Statement of Information for a Domestic Nonprofit Corporation. Form should be sent to you. May use business address for officers. May do online version. (www.sos.ca.gov/business/corp/pdf/so/corp_so100.pdf) |
|
Quarterly* |
By 3½, 5½, 8½, 11½ of ETY† |
Undone |
$0 |
CA Form 100-ES, Corporation Estimated Tax. *If gross unrelated business income is expected to be $1000+. (www.ftb.ca.gov/forms/2009/) |
|
Annual* |
By 2½ months of ETY† |
Undone |
$0 |
IRS Form 990-T, Exempt Organization Business Income Tax. *If gross unrelated business income is $1000+. (irs.gov/pub/irs-pdf/f990t.pdf, i990t.pdf) |
|
Annual |
By 120 days of †End of our Tax Year (ETY) |
Undone |
$0 |
Annual Financial Report. To all directors, give a statement of assets, liabilities, receipts, and expenditures-also detail any indemnification or self-dealing transactions, according to bylaws (Article 7, Section 7). |
|
Annual |
By the15th day of the 5th month of ETY |
Undone |
$0 |
IRS Form 990, Return of Organization Exempt from Income Tax. Use 990-EZ if gross receipts are less than $100,000 and total assets are less than $250,000. Use 990-N if gross receipts less than $25,000. Include schedules A and B. (www.irs.gov/pub/irs-pdf/f990.pdf, i990.pdf, f990ez, i990ez, [search irs.gov]) |
|
Annual* |
By 4½ months of ETY |
Undone |
$10 |
CA Form 199, California Exempt Organization Annual Information Return. *If gross receipts normally $25,000+. (www.ftb.ca.gov/forms/07_forms/07_199ins.pdf, ftb.ca.gov/forms/) |
|
Annual* |
By 4½ months of ETY |
Undone |
$0 |
CA Form 109, Exempt Organization Business Income Tax Return. *If gross unrelated business income $1000+. (www.ftb.ca.gov/businesses/) |
|
Arbitrary* |
By significant amounts of $ |
Undone |
$? |
Double-Entry Accounting Books. *If you are dealing with significant amounts of money, you will need an accountant or bookkeeper to set this up. |
|
Fifth year |
By 90 days of our fifth ETY |
Undone |
$0 |
IRS Form 8734, Support Schedule for Advance Ruling Period. For definitive ruling on meeting the public charity support requirements. IRS should send by end of our fifth tax year. (www.irs.gov/pub/irs-pdf/f8734.pdf, i8734.pdf) |
|
Employ, hire |
By employ start day |
Undone |
$0 |
IRS Form W-4, Employee's Withholding Allowance Certificate. Each employee must give the corporation to determine amount of income taxes to withhold from the employees wages. (www.irs.gov/pub/irs-pdf/fw4.pdf) |
|
Employ, hire |
By 15 days of $100+ in wages |
Undone |
$0 |
CA Form DE 1NP, Registration Form for Nonprofit Employers. (www.edd.ca.gov/Payroll_Taxes/Reporting_Requirements.htm) |
|
Employ, hire |
By 20 days of start work date |
Undone |
$0 |
CA Form DE 34, Report of New Employee(s). (www.edd.ca.gov/pdf_pub_ctr/de34.pdf, de44.pdf) |
|
Employ, hire |
By 20 days of $600+ deal |
Undone |
$0 |
CA Form DE 542, Report of Independent Contractor(s). Required for paying or contracting $600+ of work. (www.edd.ca.gov/pdf_pub_ctr/de542.pdf, de44.pdf) |
|
Employ, quarterly |
By Jan 1, Apr 1, Jul 1, and Oct 1 |
Undone |
$0 |
CA Form DE 88, Payroll Tax Deposit. Will be sent to you within six weeks, and annually by March. If income tax withholdings over $350, more filings. (edd.ca.gov/pdf_pub_ctr/de88all.pdf, de88alli.pdf, de88allsi.pdf, de44.pdf) |
|
Employ, quarterly |
By Jan 1, Apr 1, Jul 1, and Oct 1 |
Undone |
$0 |
CA Form DE 6, Quarterly Wage and Withholding Report. Required even if no wages paid. Forms sent to you. (edd.ca.gov/pdf_pub_ctr/de6.pdf, de44.pdf) |
|
Employ, quarterly |
By Jan, Apr, Jul, and Oct |
Undone |
$0 |
IRS Form 941, Employer's Quarterly Federal Tax Return. income tax and social security tax withholding. Report and pay federal income tax and social security tax withholding. See Pub 15. (www.irs.gov/pub/irs-pdf/f941.pdf, i941.pdf) |
|
Employ, annual |
By Jan 1 |
Undone |
$0 |
CA Form DE 7, Annual Reconciliation Statement. Required even if no payroll. (www.edd.ca.gov/pdf_pub_ctr/de7.pdf, de44.pdf) |
|
Employ, annual |
By Feb 1 |
Undone |
$0 |
IRS Form W-2, Wage and Tax Statement. Give two copies to each employee to show withholdings for calendar year. (www.socialsecurity.gov/employer/, www.edd.ca.gov/pdf_pub_ctr/de44.pdf) |
|
Employ, annual |
By Mar 1, or Mar 31 |
Undone |
$0 |
IRS Form W-3, Transmittal of Wage and Tax Statements. (www.socialsecurity.gov/employer/) |
|
Final |
Board approval |
Undone |
$0 |
CA Forms ELEC NP and DISS NP, Domestic Nonprofit Corporation Certificate of Election to Wind Up and Dissolve and Certificate of Dissolution. (www.sos.ca.gov/business/corp/pdf/dissolutions/corp_npdiss.pdf) |
