How To Set Up A 501c3 In Tennessee

Welcome to our Tennessee Nonprofit Startup Guide! If y'all're passionate about helping others and have an idea to serve your community, starting a nonprofit is a groovy way to turn your vision into a reality. There are many unlike types of nonprofits - religious, educational, human service oriented, animal welfare, and more. What all nonprofits have in common is a focus on helping others and benefiting their community. You lot are genuinely committed to these goals so you lot are already well on your manner!

According to the National Center for Charitable Statistics, there were over 28,000 nonprofit organizations in Tennessee in 2022. Before you start a new nonprofit, make sure you have identified an unmet need in your customs and know that there are not whatsoever existing organizations serving your cause. If another arrangement exists, consider working together, as that may be a meliorate way to make an impact in your community and use existing resources.

When you are prepare to showtime your nonprofit, plan to incorporate and use for 501(c)(3) status, every bit these are important steps to fully accomplish your goals. As a 501(c)(3) nonprofit, you will be able to utilise for grants and have donations, be exempt from federal corporate income revenue enhancement, and limit the liability of your arrangement's officers and directors. Most importantly, you lot will gain credibility and legitimacy for your cause, instilling the public with conviction in your organization.

This guide will walk you through the bones steps to first your nonprofit in Tennessee. Permit's get started!

Your organization's proper noun establishes its brand and is also of import for incorporating with the state. The legal proper noun of your nonprofit corporation may non conflict with any other organisation registered in the state. Make sure the proper noun is bachelor and meets country requirements.

The incorporator is the person who signs the Manufactures of Incorporation for your nonprofit. You volition need at least one, but can accept more than i. Directors make up the governing trunk of your nonprofit corporation and are stakeholders in your organization's purpose and success. Yous'll want to identify three, unrelated individuals to meet IRS requirements. Y'all will also want to be aware of whatever historic period or residency requirements.

Tennessee director requirements:	Number: minimum 3 Qualifications: Natural persons. No residency requirement. No membership requirement. Term: default is 1 twelvemonth, 5 year maximum Quorum: majority Committee: minimum i natural person who demand not be a managing director
Tennessee officer requirements:	A president and a secretarial assistant are required. One officer prepares minutes of the directors' and members' meetings and authenticates records of the corporation. Two or more offices may be held by the same individual, except for president and secretarial assistant.

A registered agent is responsible for receiving legal notices on behalf of your organization. The appointed registered agent must be physically located in the state and maintain an office that is open during regular concern hours. As a nationwide registered agent, our service is designed to receive your legal documents and provide secure admission to those documents through your online account. Our local Tennessee registered agent office is located in Memphis, TN. We offering registered amanuensis service independently or every bit part of our nonprofit formation packages.

Your nonprofit'south manufactures of incorporation officially mark the creation of your system. They document where and when the organization was formed and capture other information necessary to verify its existence. While requirements for language vary from state-to-country, there are some basic provisions that the IRS will wait for when y'all utilise for 501(c)(iii) exemption. It is important to customize the articles for your organization and make sure you see the state and IRS requirements. Meeting these requirements from the start will help avoid having to brand amendments later or risk getting your 501(c)(3) awarding rejected. Some states will as well require you to publish your articles of incorporation, so be mindful of any deadlines and publishing instructions.

Agency:	Tennessee Secretary of State - Sectionalisation of Business Services
Grade:	Lease (ss-4418)
Filing Method:	Mail, in-person or online.
Agency Fee:	$100
Turnaround:	~4 business concern days by post. ~2 days online. Immediately in-person.
Constabulary:	Tennessee Code Title 48. Corporations and Associations § 48-52-102
Notes:	A document of incorporation is issued upon approving.

Later on filing articles of incorporation, you must file an initial report.

This unique, nine-digit number is assigned by the IRS to identify your nonprofit. All types of nonprofits volition apply for an EIN, non only those that rent employees. Y'all will employ your EIN to open a bank account, utilize for 501(c)(3) condition, and submit 990 returns to the IRS.

Agency:	Internal Revenue Service (IRS)
Grade:	IRS Class SS-4
Filing Method:	Mail, telephone, fax, or online.
IRS fee:	$0
Turnaround:	Immediately online or by telephone. 4 concern days by fax. 4-5 weeks by mail.
Notes:	The IRS website is only available during sure hours. Print your EIN before closing your session. For additional guidance, see IRS Pub 1635: Understanding Your EIN.

Every bit y'all launch your nonprofit, you will receive a number of official documents. Organizing these documents in one place will save you headaches down the road. You lot will soon have numerous items to go on in your records including your EIN letter, bylaws, coming together minutes, 501(c)(iii) conclusion alphabetic character, and more.

A great way to maintain necessary documentation is Records Managing director, our software for storing records securely, tracking directors and officers, and getting notified of meetings.
Your bylaws are the governing document for your nonprofit. They serve every bit your organization's operating manual and should be consequent with your manufactures of incorporation and the constabulary. When your Board of Directors meets for the beginning time, y'all'll review and ratify the bylaws and they will exist a roadmap for governance from there.

At the aforementioned time, you'll also desire to create and adopt a disharmonize of interest policy. A conflict of interest is when someone in a cardinal position in your nonprofit has competing interests and is making choices that could do good themselves to the damage of the organization. Personal interests should be set aside and organizational interests prioritized. If a conflict of interest does arise, it should be disclosed immediately.

Your application to the IRS for 501(c)(3) exemption will require that both the bylaws and the conflict of interest policy are approved and adopted. Once they've been adopted, safely store them in your Nonprofit Records Kit.
The initial organizational meeting of your Board of Directors will be incredibly productive. At this meeting you will approve the bylaws, adopt the disharmonize of interest policy, elect directors, appoint officers, and approve resolutions such as opening the organisation'due south banking concern account. Important decisions are beingness made so be sure to tape them in the meeting minutes.

Tennessee offers a consolidated registration application for new concern state tax registration.

Submit to:	Tennessee Department of Revenue http://www.tn.gov/acquirement/
Guidance:	Instructions on Opening a Business in Tennessee
Grade:	Grade RV-F1300501: Tennessee Section of Revenue Awarding for Registration
Instructions:	Grade RV-F1300501 - Instructions
Filing Method:	Mail or online
Fee:	$0

Applying for 501(c) tax exemption can feel like the most daunting step in bringing your nonprofit dream into reality, simply obtaining tax exemption comes with many benefits. You lot will be able to apply for grants and grow your fundraising success in add-on to existence exempt from IRS income revenue enhancement. 501(c) is the chapter of the Internal Revenue Code that regulates nonprofit organizations. Similar others, you may be most familiar with 501(c)(3) nonprofits, including charities and foundations. 501(c)(iii) nonprofits use using Form 1023 or Class 1023-EZ. Review the criteria for each awarding and brand certain you meet the eligibility requirements set out past the IRS. Other types of nonprofits, including 501(c)(4)due south and 501(c)(6)southward, apply using Form 1024. After reviewing and approving your application, the IRS volition render a Determination Letter officially recognizing your exemption.

Completing the federal application for tax exemption is significantly easier with the assistance and support of a professional. Find someone with the expertise to ensure the correct application is beingness used and is completed accurately. A well-prepared application takes time, over 100 hours past IRS estimates, so put yourself on the path to success past finding a specialist to walk alongside you in the journeying - from offset to taxation-exempt finish!

Bureau:	Internal Revenue Service (IRS)
Grade:	IRS Form 1023, IRS Class 1023-EZ, or IRS Form 1024
Instructions:	IRS Instructions for Form 1023, IRS Instructions for Form 1023-EZ, or IRS Instructions for Form 1024. Likewise see guidance IRS Pub 557: Tax-Exempt Status for Your Organization.
Filing Method:	Mail
Bureau Fee:	$275 for organizations filing Class 1023-EZ and $600 for organizations filing Form 1023.
Turnaround:	1023-EZ boilerplate: <1 calendar month. 1023 average: iii-6 months.

Tax-Exempt in 2 Weeks!

Download the case study of how our customer, Reform It At present, obtained 501(c)(3) tax exemption in only two weeks using the new IRS Form 1023-EZ!

From filing the 1023EZ on August 1st to receipt of the determination letter on August 14th is, in my humble opinion, only breathtaking and I dare say, ONLY Harbor Compliance could accept achieved that.

Dr. Bob A. Reform It Now, Inc.

With your IRS Determination Letter in hand, make certain you familiarize yourself with your state'southward requirements for recognizing your nonprofit's taxation-exempt status. This is an area where requirements vary state-by-state. Many states issue their ain taxation-exempt certificate that can be used for sales and use tax purposes, only it may require awarding and periodic renewal.

To file to obtain exemption from state income revenue enhancement:

Not required

Franchise and excise taxes are not applicable to nonprofit corporations as defined by law. The Application for Exemption - Franchise and Excise Taxes form is for other exemptions.

More information: Tennessee Department of Revenue

To file to obtain Sales Tax Exemption:

This is another expanse where laws differ from state to state, but most states require any nonprofit soliciting donations to register to do so on an annual basis. This ways registering in the state prior to soliciting whatever resident of that state. Registering in your home state is essential, but you lot may also demand to register other states depending on the scope of your organization.

Tennessee Charitable Organization Registration

Agency:	Tennessee Secretary of Land - Division of Charitable Solicitations and Gaming
Constabulary:	Tennessee Code Annotated §48-101-501 and post-obit
Foreign Qualification is Prerequisite:	No
Registered Agent (Special Agency) Required?	No

Automated Exemption

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Exemption Eligible Organizations:

Bona fide religious institutions
An organization organized and operated exclusively for educational purposes and which normally maintains a regular faculty and curriculum and normally has a regularly enrolled body of pupils or students in attendance at the place where its educational activities are regularly carried on, and which is accredited past a recognized accrediting agency. Included in such definition are organizations composed of parents of students and other persons connected with the institution, which are organized and operated for the purpose of conducting activities in support of the operations or extracurricular activities of such institutions. "Educational institution" also includes private foundations soliciting contributions exclusively for such organizations.
Cooperative scholarship corporations regulated by title 49, chapter 4, role ane
Volunteer burn down departments, rescue squads or local ceremonious defense organizations
Community fairs, county fairs, district fairs and sectionalization fairs, as defined in § 43-21-104, that have been qualified by the commissioner of agriculture to receive country aid grants, pursuant to title 43, chapter 21, part 1
Political parties, candidates for federal or state part, and political action committees required to file financial data with federal or state election commissions
Hospitals and nursing homes that are subject to regulation by the Tennessee Department of Health
Whatsoever corporation established past an act of congress of the United States that is required by federal police to submit annual reports of its activities to congress containing itemized accounts of all receipts and expenditures after being fully audited by the department of defense force

Law:

Tenn. Code Ann. § 48-101-502

Registration to Obtain Exemption

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Renewal to Maintain Exemption

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Initial Registration

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Form:	Course SS-6001: Application for Registration of a Charitable Organization
Instructions:	Filing instructions for registration of a charitable organization
Filing Method:	Mail or online.
Bureau Fee:	$10
Turnaround:	1 month
Notes:	The CFO and some other officer must sign. Signatures need not be notarized. Recall to attach the Summary of Financial Activities form. If your nonprofit registers during its first year, it must file a quarterly financial report. Some Tennessee counties and municipalities may require charities that solicit in-person to annals prior to fundraising.
Before you Apply:	Domestic Applicants: Check the available exemptions to see if your clemency is eligible for exemption from the full registration requirement. If your clemency meets the inspect threshold, obtain an audited fiscal report to submit with your registration awarding. Look through the list of required attachments and make sure that you lot have each required document in hand before starting the registration application. Foreign Applicants: Check the available exemptions to see if your clemency is eligible for exemption from the full registration requirement. If your clemency meets the audit threshold, obtain an audited financial written report to submit with your registration application. Wait through the list of required attachments and brand sure that you have each required document in manus before starting the registration awarding. If you will foreign qualify in Tennessee, obtain a certificate of expert standing from your domicile state to submit during the foreign qualification process. The document cannot be more than 2 months old when filing strange qualification documents.
How to Apply:	Domestic Applicants: File entity formation documents with the Tennessee Secretary of State - Partitioning of Business Services. Submit an Application for Registration of a Charitable Organisation, a quarterly or almanac summary of financial activites form, and all required attachments to the Tennessee Secretary of Land - Sectionalization of Charitable Solicitations and Gaming. Foreign Applicants: Determine whether or non your charity will need to strange qualify based on your activity in Tennessee. If not required, skip to number 3. File foreign qualification documents with the Tennessee Secretary of State - Division of Business organization Services. Submit an Application for Registration of a Charitable Organization, a quarterly or almanac summary of financial activites form, and all required attachments to the Tennessee Secretarial assistant of State - Division of Charitable Solicitations and Gaming.
Required Attachments:	IRS form 990 Audited financials (if applicable) Articles of incorporation Bylaws IRS determination letter List of officers and directors Professional fundraising contracts

Registration Renewal

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Form:	Grade SS-6002: Application to Renew Registration of a Charitable Organization
Instructions:	Filing instructions for renewing registration of a charitable organization
Filing Method:	Mail or online.
Agency Fee:	$10
Due:	Annually within 6 months afterward the close of your financial year. And so if your fiscal twelvemonth ends December 31, then file by June 30. There is no official kickoff to the renewal period, and so renewals may be submitted equally soon as financials get bachelor for the most recently completed fiscal year.
Due Date Extension:	Due dates can be extended for 150 days beyond the original due appointment past submitting a request for extension through the online portal. A copy of IRS form 8868 must exist included when requesting an extension.
Penalties:	There is a late fee of $10 for each month that passes later on the due date.
Notes:	The CFO and another officer must sign. Signatures demand not be notarized. Retrieve to attach the Summary of Financial Activities class
Required Attachments:	IRS course 990 Audited financials (if applicable) List of officers and directors Professional fundraising contracts

Contract Filing

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Agency Fee:	$0
Due:	Charities must submit copies of every contract they have with professional fundraisers, fundraising counsels, and commercial co-venturers during initial charitable registration and during charitable registration renewal.

Financial Reporting
Quarterly Financial Report

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Grade:	Quarterly Financial Report
Filing Method:	Mail or online.
Agency Fee:	$0
Due:	Within 30 days afterward the end of each quarter of the organization's current fiscal year.
Notes:	During their first twelvemonth of performance, newly registered charitable organizations must provide quarterly financial reports to the Secretary of State.

Change of Financial Year

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Agency Fee:	$0
Turnaround:	ane-2 business days
Notes:	Transport the state a re-create of the short IRS 990 once it is bachelor.

Counterfoil

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Form:	Find of Intent to Cease Solicitation Activity
Bureau Fee:	$0
Notes:	To close out your registration, submit a Notice of Intent to Cease Solicitations, the nigh recently filed IRS form 990, and a brief letter of explanation.
Required Attachments:	About recent IRS Course 990 or financial documentation

To fundraise nationally or online, please run across our Fundraising Compliance Guide. Our services manage your initial, renewal, and exemption filings in every state.

Running your nonprofit corporation legally also means securing all applicable licenses and permits. The range of local, land, and federal requirements is wide. Access resources like the Small Business Administration Business License & Permit look-up tool and search past your business type and locality.

You've made information technology! You lot turned your passion into a legitimate nonprofit corporation exempt under IRS 501(c) and are benefiting your community. That solid foundation on which you built your organization requires ongoing maintenance. Investing in maintaining compliance with all of the authorities agencies is an ongoing responsibility and commitment needed to ensure your vision continues long into the future. Check out our compliance guide to learn more!

Once you have registered your nonprofit per the steps listed above, you will need to maintain compliance with all of the government agencies. Staying current with the IRS and state requirements is an ongoing responsibility. Go on reading our Tennessee nonprofit compliance guide to learn more!

Go on reading "Tennessee Nonprofit Compliance"

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Fast Facts

Below is an overview of the paperwork, cost, and time to start an Tennessee nonprofit.

Paperwork

Form SS-4418: Charter Nonprofit Corporation
Bylaws
IRS Class SS-4: Obtain an EIN
IRS Form 1023: 501(c) Tax Exempt Application
IRS Decision Letter
Form RV-F1300501: Tennessee Department of Acquirement Awarding for Registration
Grade RV-F1306901: Application for Registration - Sales and Utilize Tax Exempt Entities
URS Charitable Registration, if applicative
Charitable Registration: Form SS-6001: Awarding for Registration of a Charitable Organization and Form SS-6002: Summary of Fiscal Activities of a Charitable Organization OR Form SS-6042: Exemption Asking

Cost

Incorporation: $100
501(c): $275 or $600 IRS fee
Tennessee charitable registration: $50 ($0 if exempt)

Time

Incorporation: ~4 business days past mail. ~2 days online. Immediately in-person.
501(c): 2 weeks to 3 months

Revised September 07, 2022. Complete data terminal reviewed October 19, 2022.

Source: https://www.harborcompliance.com/information/how-to-start-a-non-profit-organization-in-tennessee