IncFile.com - Business Incorporation Solutions

Absolutely not. Being formed as a Nonprofit Corporation does not automatically mean that the corporation is tax-exempt for federal and, in some instances, state income tax. A “tax-exempt” Corporation is a distinctive entity that has gained an exemption from income tax liability. A Nonprofit Corporation is not eligible for exemption from income tax liability until […]

The majority of states require Nonprofit Corporations to have a minimum of three directors. However, some states allow for less than three directors. A small number of states require only one director.

Yes, a Nonprofit Corporation may pay a reasonable salary to its officers, directors and/or employees for services rendered to the Nonprofit Corporation and associated to its exempt purpose.

You are not required to form your nonprofit in the state where it will be physically located. However, practical matters in choosing a location to incorporate should be taken into consideration, such as the state fees and the taxation laws governing that state. If your nonprofit corporation will have only a few officers or directors […]

You should choose a name that represents the purpose of your nonprofit corporation. If you incorporate through IncFile, we will request a first and second name choice for your nonprofit and complete a name availability search to assure that your name is available and not deceptively similar to any other legal entity. Further, you must […]

You must incorporate the nonprofit organization in your particular state, which consists of filing your organization’s articles of incorporation with the state. It is important that your organizing documents contain the required language and specific clauses, such as a detailed exempt purpose statement, to ensure that your nonprofit will meet the requirements to qualify for […]

A Nonprofit Corporation is a Corporation whose principal purpose is public benefit and not for producing a profit. A Nonprofit Corporation may not distribute income to benefit its officers and/or directors. More importantly, a Nonprofit Corporation is not an ordinary business and should not be used as an alternative form for a business with the […]

Due to the fact that the EIN is filed with the IRS in the name of the company, we have to wait until the state officially forms your company and we receive the official filed documents from the state in order to electronically obtain your EIN. Once we have received your documents from the state […]

Although we perform a name search for your company before we file it with the state, the company name is not official until it has been accepted and filed by the state. We cannot recommend making any business or financial decisions based upon the company name until it has officially been accepted and filed by […]

If you already have an EIN, and the organization or ownership of your business changes, you may need to apply for a new number. Some of the circumstances under which a new number is required are as follows:

An existing business is purchased or inherited by an individual who will operate it as a sole proprietorship.
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A corporation consists of all three: officers, directors and shareholders. Shareholders are the owners of the corporation and elect the directors. Directors guide and are involved in the fundamental decisions of the corporation on behalf of the shareholders. Officers are selected by the directors and run the day-to-day operations of the corporation. These do not […]

The 2553 Form, known as the sub chapter S election, is required to be filed with the IRS to get S-Corporation status for purposes of federal taxation. Filing this Form with the IRS is used to convert a C-Corporation into an S-Corporation.

Par value is a nominal dollar amount given to corporate shares. It doesn’t necessarily reflect their real value, and is typically set at a low value (i.e. one dollar or one cent). The par value of a share is the minimum price at which it may be sold to shareholders, and the par value must […]

The bylaws of a corporation are an internal document that contains rules for holding corporate meetings and carrying out other formalities according to state corporate laws. Bylaws are not filed with the state.

The number of initial shares your corporation is authorized to distribute is specified in the Articles of Incorporation. The actual number is more or less arbitrary, at your discretion. IncFile uses a default number of 1500 shares (this is due to the fact that 1500 is easily divisible by 2, 3, 4, 5, 6), with […]

Once you receive the filed Articles of Incorporation, which signifies the formation of the corporation by your state, your corporation will need to hold an organizational meeting of the initial shareholders and directors. At this meeting the directors will typically adopt corporate bylaws, distribute corporation stock to initial shareholders, and appoint corporate officers. Also, in […]

Unlike many other business entities in which the profits pass through to the owners’ personal tax return (e.g. LLCs, S Corporations, etc.), the C Corporation is a completely separate taxable entity. The C Corporation pays federal taxes on the net profits (after all expenses, including salaries and bonuses) of the business by filing the 1120 […]

A Corporation is managed and run by its directors and officers. The directors are appointed by the shareholders and are responsible for the overall management and corporate governance of the corporation. The directors appoint the officers who are responsible for the day to management and operations of the corporation. The typical officer positions are president, […]

Forming a Nonprofit Corporation will not only make you more accessible to potential donors. It will can your organization credibility and help you protect your personal assets, too.
Unlike a for-profit Corporation, a Nonprofit Corporation is not designed to make a profit for shareholders. Instead, it is established for a specific noncommercial purpose, such as educational, […]

Even though it is not legally required by most states (New York is an exception), having an operating agreement for your LLC is a smart move - and not having one can be dangerous for both you and your business.
An operating agreement is a contract among the LLCs members stipulating its membership, management, operation, and […]