How to start a nonprofit in South Carolina

To start a nonprofit in South Carolina, choose a concept, choose and register a legal entity, and find a location. Nonprofits are wonderful businesses to begin with, but there are crucial steps to take to ensure the legality of your organization.

1. Choose a concept. There are many different types of nonprofit organizations. They also focus on many different ways to help.

   You must have a solid understanding of how you see your nonprofit functioning when looking into the legality of starting it. You should create a business plan that clearly outlines the plan for your nonprofit.

2. Recruit an incorporator and appoint a registered agent. It is important to recruit an incorporator as this person can sign the Articles of Incorporation for your nonprofit. You need to have at least one, but you can choose to have more than one.

   You also must appoint at least three initial directors to meet IRS requirements. A registered agent is important as they receive all legal notices for your nonprofit.

3. Name your nonprofit and prepare initial forms. You need to choose a name for your organization to register it with South Carolina. You then need to prepare and file articles of incorporation for your business.

   This filing officially marks the creation of your corporation. After filing the articles of incorporation, you need to file an initial report.

4. Obtain an Employer Identification Number and South Carolina Tax ID. An EIN is a nine-digit number assigned to you by the IRS. It identifies your nonprofit. You need this to open bank accounts, submit returns, and apply for 501(c)(s) status. You also need to obtain a South Carolina tax ID and account.

5. Apply for 501(c)(s) status. Obtaining 501(c)(s) Status is crucial for your business, as it makes your business get tax exemption status. Review the requirements from the IRS, and be sure you meet them before applying.

   Some professionals can help you in doing this, which makes the process much easier, although this requires you to pay a fee.

   Along with obtaining tax exemption at a federal level, you can also apply for South Carolina state tax exemptions once you have your IRS Determination Letter in Hand. This allows you to hold a state tax-exempt status, and you are also exempt from South Carolina corporate income tax.

6. Establish bylaws. You must establish bylaws for your nonprofit. These are the initial governing documents and policies for your nonprofit.

   You should also hold an organizational meeting with your board of directors to ensure these documents and policies follow the missions and goals of your organization.