Delaware 501c3 Corporations: Tax Exempt Organizations Non Profit

Delaware Organizations Non Profit

Incorporating your non profit organizations in Delaware can bring about several potential advantages because of the flexible business laws and tax incentives available within the state. Most nonprofits prefer incorporating in Delaware mainly because of the unique personal liability protection it provides to volunteer members and directors of the corporation.

Forming a Tax exempt 501c3 Corporations

Forming tax exempt 501c3 Corporations in Delaware will require:

• Checking for availability of the proposed corporate name
• Preparing and filing articles of incorporation with the Secretary of State and paying an initial filing fee of $89.
• The articles of incorporation must include the proposed corporate name, its intended purpose, name and street address of the registered agent and stock information.
• The number of corporate shares may affect the initial filing fee.

Other formation procedures will include applying for your Federal Tax Identification Number (EIN) and applying for the 501(c) (3) tax-exempt status from the IRS.

Benefits of Obtaining the Tax-Exempt Status

Filing under section 501(c) (3) or non profit tax-exempt incorporation in compliance with the Internal Revenue Service Regulations is the first critical step to qualifying for the tax-exempt status. Nonprofits that qualify for the tax-exempt status in Delaware enjoy the personal liability protection for directors and/or members of the corporation, exempt from paying federal and state income and have the permission to obtain tax-free grants from government agencies and private organizations.

For more information

• Non profit overview
• Is a 501c3 right for you?