Monday, September 21, 2015

Florida Laws About Starting A Nonprofit Organization

Florida Laws About Starting a Nonprofit Organization


Florida law allows you to form a nonprofit corporation for any legal purpose except making a profit. Nonprofits don't have to be charities: Entities such as theater groups and private recreational clubs can form as nonprofit organizations. The advantage of incorporating as a nonprofit is that you can apply for exemptions from state income and state taxes and possibly federal corporate income tax as well.


Names


You have to choose a name for your corporation distinct from any corporate names currently registered with the Florida Division of Corporations. The division maintains an online database you can search through before you file your incorporation papers. Florida law states that your nonprofit must use "corporation," "incorporated" or an abbreviation for those words in its name; it cannot use "company" and cannot have a name that makes it sound as if it's affiliated with the state or federal government.


People


To create a Florida nonprofit, you'll need a registered agent -- a Florida individual or business willing to receive legal notices on the nonprofit's behalf. You'll have to include the name and address of the agent in your incorporation papers. You need at least three directors for a Florida nonprofit; you can name them when you incorporate or you and the other "incorporators" can appoint them at an organizational meeting after incorporation.


Incorporation


To create your nonprofit, file your articles of incorporation and your state fees with the Division of Corporations. You can do this by mail or through the division's website. The articles must include the corporate name, the corporation's purpose, your name and that of any other "incorporators," the names of the directors if they've been appointed already, and whether the corporation will have members. The articles should make clear whether members are simply individuals participating in the corporate activity or if they have actual voting power binding on the board of directors.


Bylaws


Bylaws are the rules and procedures for corporate operations. Florida law gives your nonprofit's board of directors the authority to draw up, amend or repeal the bylaws, as long as the board's decisions are consistent with the articles of incorporation. You can include the rules in the articles if you prefer, but the Nolo legal website recommends putting as much as possible in the bylaws: They're easier to amend, and you don't have to file a report with the Division of Corporations as you will if you amend the articles.

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