LAW OFFICES OF RL JOHNSON
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Attorney-Client relationship. Moreover, while some of the information found on this site is based on laws and court rulings, it is not intended to be legal advice and must
not be relied upon as legal advice on specific facts.
Law Offices of RL Johnson | Copyright © 2007 All Rights Reserved.
Legal Services for Businesses
LOCATIONS
MAIN OFFICE
Livonia Michigan
39111 Six Mile Road
Livonia, Michigan 48152
Tel.: (734) 521-2501
Fax: (800) 597-0284
Our Other Locations
Southfield Michigan
Call for an appointment: (800) 597-0284
Bloomfield Hills Michigan
Call for an appointment: (888) 443-4146
Novi Michigan
Call for an appointment: (800) 545-8930
The purpose of a charitable nonprofit must be for the public interest and common good. It should establish a
single mission and a set of goals and programs that will accomplish that mission. This is a step where a new
nonprofit should analyze what it wants to do, who it wants to reach, and how it wants to impact society. A
mission statement should be brief, timeless, and descriptive of what the organization is trying to accomplish.
The Mission Statement will guide the organization through its initial formation, program development, growth
and change.
There are various kinds of nonprofits. The best know is commonly referred to as a 501(c)(3). A 501(c)(3)’s
assets must be dedicated to charitable purposes such that no substantial portion of its assets can be used for
other than charitable purposes. For instance, a 501(c)(3) can engage in legislative activity provide it makes the
required elections with the IRS and provided its legislative activities are insubstantial. Click here to view a chart
that compares various nonprofit statues.
While forming a nonprofit corporation can implicate many complex issues, we have distilled the process down
to 12 Steps.
 | | Get clear on your purpose and choose a name for your nonprofit. (While you’re at it, select and |
| | reserve a web domain name.)
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 | | Form your incorporating board of directors (practically speaking, three people are needed) and |
| | identify leadership team.
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 | | Write Articles of Incorporation including a statement of your purpose and submit them to the |
| | appropriate office in your appropriate state government with the required fee. Then, wait for a response from your state.
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 | | Create a business plan with a budget.
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 | | Obtain a Federal Employer Identification Number, submitting IRS Form SS-4.
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 | | Develop organizational bylaws (i.e., the rules by which you will operate).
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 | | Hold and document your first board meeting.
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 | | Review IRS Publication 557, instructions for filing for tax exemption.
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 | | File IRS Form 1023 if you are applying to become a 501(c)(3) tax exempt organization (preferably |
| | within 15 months of the date of incorporation) and file annual returns with the IRS.
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 | | Pay filing fees of $750 if you anticipate having revenue of over $10,000 per year, or $300 if you |
| | anticipate having revenue of less than $10,000 per year and the accompanying IRS Form 8718.
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 | | Comply with state laws governing charities.
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We are nonprofit specialists with years of experience in this area. Whether you’re considering the benefits of | | forming a nonprofit or looking for legal support for an existing organization, we can help. Please give us a call to discuss your business needs.
Use the following form to schedule a free consultation or to get more information about our company or services.
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