Texas 501c3 Corporations: Tax Exempt Organizations Non Profit
Forming a Non Profit Organization in Texas
The primary benefit to incorporating your charitable organization in the state of Texas is obtaining the special limited liability protection and the many tax and financial incentives available to non profits within the state.
There are several procedures to incorporating your non profit organization within the state of Texas including:
- Choosing a name: the name you choose must be unique from any other registered name on file and must contain the term “Corporation”, “Incorporation”, “Limited” or an abbreviation of it.
- Check for name availability with the Texas Secretary of State's database
- Prepare, sign and file articles of incorporation/certificate of formation with the Secretary of State and paying an initial filing fee of $25. The articles of incorporation/certificate of formation must include the proposed name, intended purpose, number of stock/share information, the name and street address of the registered agent and the corporation's street address.
- Create corporate bylaws
- Appoint a board of initial directors
- Apply for your Federal Tax Identification Number
Non Profit Tax Exempt Texas 501c3 Corporations:
Non profits recognized as public charity or "mutual benefit" and qualify for the 501 (c) (3) tax-exempt status from the IRS are liable to obtain the many benefits and privileges available to nonprofit charitable organizations such as the limited liability protection for directors and/or members and the permission to obtain grants from both public and private entities. This status also exempts the corporation from paying federal and state incomes on profits generated by the entity.
