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Articles of Incorporation; Domestic Nonprofit Corporations
Under the Non-profit Corporation Law and California Corporations code section 5000, non-profit or non-stock corporations falling under these categories – charitable, educational, social, recreational, religious or similar purpose – can be formed. Here are the three basic non-profit corporation types:
Religious Corporations
A corporation that is formed to run a church or a structure put in place specifically for religious purposes is classified as a Non-profit Religious Corporation. To form such a corporation, you need to file the Articles of Incorporation with the California Secretary of State. A personalized document can be composed or you can choose to make use of Form ARTS-RE.
Public Benefit Corporations
This is a corporation organized solely for charitable purposes, and whose ultimate aim is to get state tax exemption under the California Revenue and Taxation Code, section聽. Alternatively, federal tax exemption under the Internal Revenue Code, section can be acquired.
Formation requires filing the Articles of Incorporation with the California Secretary of State. As before, you鈥檙e at liberty to compose a document of your choosing or going through .
Public Benefit Corporations may also be classified as social welfare organization or a civic league whose ultimate goal is to obtain state tax exemption under California Revenue and Taxation Code, section聽. Additionally, or as an alternative, a state tax exemption under Internal Revenue Code section聽 can be acquired as well. The general procedure is the same: compose and file Articles of Incorporation with the California Secretary of State.
Mutual Benefit Corporations
If you鈥檙e planning to form a corporation for a purpose other than charitable, religious, social welfare or civic league and looking to get tax exemption under provisions other than California Revenue and Taxation Code sections聽听补苍诲听, Internal Revenue Code section聽, or simply not looking for tax exemption at all – this applies to you.
File Articles of Incorporation with the California Secretary of State and you鈥檙e all set. As mentioned previously, you can compose a document yourself or go through Form ARTS-MU.
Although the afore-mentioned forms confirm to statutory requirements, you ought to seek the advice of a private attorney to better assess your business needs or under special circumstances, when additional provisions are in order.
Statement of Information: Form SI-100
This is to be filed with the California of State in no less than 90 days after you have filed the Articles of Incorporation, including every other year until the applicable filing period is fulfilled.
The applicable filing period refers to the calendar month during which the Articles of Incorporation were filed, including the preceding five months. Refer to sections ,听听辞谤听.
Tax Requirement
Most corporations are obliged to pay no less then $800 to the聽聽annually (section 23153).
Non-profit corporations in California are not exempt by default from paying California franchise tax or income tax annually. An individual application is needed so that tax exemption can be obtained.
Just so you know the California Secretary of State聽does not聽provide licensing for corporations.