Form a nonprofit, for free.
A nonprofit corporation is formed to serve a mission, not owners. Once the state approves it, you apply to the IRS for 501(c)(3) status, which makes donations tax-deductible and opens the door to grants. We file the state formation at no service cost, and prepare the 501(c)(3) package when you're ready.
Right now, your cause is a group of people and a shared bank account.
You've got a mission and momentum, but not the thing that opens real support: a legal nonprofit with tax-exempt status. Without it, donations aren't deductible, most grants are off-limits, and you're personally exposed for the group's obligations. Getting there takes two steps that trip people up, a state formation and then an IRS approval, in the right order. You don't need to learn nonprofit law. You need one clear path, and a team that files both.
The thing to understand before anything else: forming the nonprofit is not the same as getting 501(c)(3).
What a nonprofit is: and what 501(c)(3) adds.
Forming a nonprofit corporation with your state creates the legal entity: a mission-driven organization with a board, no owners, and no profit paid out to individuals. That's step one, and it's fast. What makes donations tax-deductible and opens most grant doors is a separate step: applying to the IRS for 501(c)(3) tax-exempt status, using Form 1023 or the shorter 1023-EZ. Two steps, two agencies, in order. The state gives you the entity; the IRS gives you the exemption, and you need both to operate as a public charity.
- Your purpose is charitable, educational, religious, or scientific, not to make profit for owners.
- You want donations to be tax-deductible and to qualify for grants and foundation funding.
- You'll be governed by a board, with no owners and no profit distributed to individuals.
- You're ready for the two-step path: state formation, then IRS 501(c)(3) approval.
- You want to pursue a mission and keep profit: a benefit corporation is for-profit with a purpose.
- You'll pay owners or reinvest earnings for yourself rather than a public cause.
- You're running a program that works fine as a standard LLC.
- You don't need tax-deductible donations or grant eligibility to do the work.
The detail that determines everything: your formation documents have to contain specific IRS language, a proper purpose clause and a dissolution clause dedicating assets to another exempt organization, or the 501(c)(3) application gets rejected and you refile. Most generic nonprofit templates miss this. We build the exempt-purpose language into the state filing from the start, so the IRS step goes smoothly instead of bouncing.
Going with a nonprofit? Settle two things first.
The two calls that stall founders: your name, and your state.
Make both right here. No signup: real 2026 nonprofit filing numbers, and names you can check on the spot.
Find a name that fits.
Type a word or two about your mission. We'll spark a set of ideas, then you can check any favorite live against state and USPTO records.
A clear, mission-forward name helps with donors and grants. Run a favorite through the live availability check, or open the full name generator.
What will your nonprofit cost?
State formation is $0 from us; you pay only the state's filing fee, at cost. Becoming a 501(c)(3) is a separate IRS step: our $599 package plus the IRS user fee.
State fees are the government's charge, not ours. 501(c)(3) pricing on the pricing page.
Name picked, state chosen. Now the handoff.
A clean handoff, in four steps.
You make four decisions. We file the nonprofit with the exempt-purpose language the IRS will want to see next.
Pick your state
Nonprofits almost always form in the state where they operate and raise money. BosAI notes any state-specific charitable rules you'll meet later.
Confirm your name
We check it against the state register and naming rules, then reserve it if you're not filing the same day.
Name your board + purpose
List your directors (most states want at least three), state your charitable purpose, and appoint a registered agent, included year 1.
We file it
We submit your nonprofit Articles with the IRS-ready purpose and dissolution clauses, then return the stamped approval. The 501(c)(3) application comes next.
Then the step that makes it official with the IRS.
The moment your mission becomes an organization.
State approval is fast: same or next day in several states, a few business days in most. That gives you the legal nonprofit; the 501(c)(3) determination from the IRS follows and takes longer. We file the state formation the moment your details check out.
Riverside Youth Center
Nonprofit Certificate of Formation, filed with the Secretary of State, with IRS-ready purpose and dissolution clauses. 501(c)(3) application in progress.
The Riverside Youth Center went from group chat to grant.
Three volunteers, one after-school program. We formed the nonprofit with the right IRS language, got the EIN, adopted bylaws and a board, and filed the 501(c)(3). Once the determination came through, donations became deductible and the center landed its first foundation grant.
State approval is the start. Here's the path to tax-exempt and beyond.
From state approval to a working charity, in order.
These make the organization fundable and get you to 501(c)(3). The order matters: some steps are prerequisites for the IRS application.
Get your EIN
Every nonprofit needs one, and the 501(c)(3) application requires it. It's free from the IRS, and we file it the same day, so you're ready for the next step.
Adopt bylaws, a conflict-of-interest policy, and a board
The IRS expects a real governance structure: bylaws, a conflict-of-interest policy, and a board that holds an organizational meeting and keeps minutes. These aren't formalities to the IRS; they're part of what the 501(c)(3) review looks for.
File your 501(c)(3) application
This is the big one: Form 1023, or the shorter 1023-EZ for smaller organizations, is what makes donations tax-deductible and opens grants. Our 501(c)(3) package prepares it; the IRS charges its own user fee. Getting the earlier steps right is what keeps this from being rejected.
Open a bank account and register to solicit
Open a nonprofit bank account to keep funds separate, and register for charitable solicitation in states where you'll ask for donations, which most require before you fundraise. We flag which states apply to you.
File your annual Form 990 and state reports
Tax-exempt doesn't mean filing-free: the IRS wants a Form 990 each year, and states want their own annual report and charitable-registration renewals. Miss them and you can lose the status you worked for. A compliance calendar tracks every date.
You can do these one by one. Or hand the whole sequence to one team.
Form the entity, or go all the way to 501(c)(3).
- Nonprofit Articles filed with IRS-ready language
- Purpose + dissolution clauses drafted
- Bylaws + conflict-of-interest template
- EIN walkthrough
- Everything in state formation
- Form 1023 or 1023-EZ prepared for you
- Board resolutions + governance policies
- Charitable-solicitation registration guidance
- Specialist review of the whole application
State fees and the IRS user fee are passed through at cost. Ongoing compliance from $199/yr. See full pricing →
And this is where most filing companies stop. We're just getting to the part that matters.
Your organization is now formed. Let's build everything that comes next.
Formation is one line in a much longer story. Every stage below already lives on one platform, so you're never starting over with a new provider.
Everything above happens inside File.Business: one platform, from your first meeting to a funded, compliant charity. It's where you form your nonprofit, and where you keep it in good standing for good.
The questions founders ask right before they file.
Is forming a nonprofit the same as getting 501(c)(3)?
No, and confusing the two is the most common mistake. Forming a nonprofit is a state filing that creates the legal entity. Getting 501(c)(3) is a separate federal step: you apply to the IRS, and only that approval makes donations tax-deductible and qualifies you for most grants. You do the state formation first, then the IRS application, in that order. We handle both, and we write the state filing so the IRS step goes smoothly rather than getting kicked back for missing language.
Nonprofit, benefit corporation, or LLC: which do I need?
Choose a nonprofit if your purpose is charitable and you want tax-deductible donations and grant eligibility, with no owners and no profit distributed to individuals. Choose a benefit corporation if you want to pursue a mission but still make and keep profit, since it's a for-profit company. Choose an LLC if you're running a program that doesn't need tax-exempt status. The deciding question is whether you need deductible donations and grants: only the nonprofit path gives you those.
How long does 501(c)(3) approval take?
The state formation is quick, often days. The IRS determination is the slower part and depends on which form you file: the shorter Form 1023-EZ, available to smaller organizations that meet the eligibility rules, is often processed in a few weeks, while the full Form 1023 can take several months. Filing the right form correctly the first time is the biggest lever on speed, which is exactly what our 501(c)(3) package is built to get right so you avoid a resubmission.
Can I pay myself a salary from a nonprofit?
Yes. A nonprofit can pay reasonable salaries to staff, including a founder who works in the organization; what it can't do is distribute profit to owners or members, because it has none. The key word is reasonable: compensation has to be in line with what similar roles earn, and it's best set by a board that documents the decision, partly to satisfy the IRS. So you can earn a living running your nonprofit; you just can't treat it like a company you own.
Form 1023 or 1023-EZ: which one applies to me?
The 1023-EZ is a shorter, cheaper application for smaller organizations, generally those expecting limited annual gross receipts and modest assets, and it's processed faster. The full Form 1023 is required for larger organizations and certain types, such as churches or schools, and asks for far more detail, including narratives and financial projections. We assess your situation against the current IRS eligibility thresholds and file the form you actually qualify for, so you don't use the EZ when you shouldn't or the long form when you don't have to.
Do I need to register for charitable solicitation?
Usually, yes. Most states require a nonprofit to register before it asks residents for donations, and some require renewing that registration each year, separate from your annual report. If you fundraise online or across state lines, you can trigger registration in multiple states. It's an easy step to overlook and a common source of penalties. We flag which states apply based on where you'll raise money, and include registration guidance in the 501(c)(3) package.
What is Form 990, and do I have to file it?
Form 990 is the annual information return nonprofits file with the IRS. Tax-exempt doesn't mean filing-exempt: you report your finances, governance, and programs each year, on the 990, 990-EZ, or 990-N postcard depending on your size. Miss it three years in a row and the IRS automatically revokes your exempt status, which is a painful and avoidable loss. It's also public, so donors can read it. A compliance calendar keeps the deadline in front of you.
Can a non-US resident start a US nonprofit?
Yes. You don't need to be a citizen or resident to form a US nonprofit or to serve on its board, and many international founders do. You'll need a US EIN, which we obtain from the IRS without an SSN, and a registered agent in the state of formation. The 501(c)(3) rules apply the same way regardless of where the founders live, though the organization's activities and where it operates can affect the application, so tell us your plans and we'll structure it accordingly.