Choose a nonprofit purpose and confirm it qualifies under applicable law
Select the nonprofit type (e.g., public charity, private foundation, mutual benefit)
Choose a legal name and check availability/uniqueness
Appoint initial directors and confirm eligibility requirements
Draft governing documents (articles of incorporation/association and bylaws)
Define mission, membership rules (if any), board structure, voting, and officer roles
Prepare and file formation documents with the state/province agency
Pay required filing fees and obtain the filed/approved formation certificate
Create bylaws and adopt them at an organizing meeting
Hold an initial board meeting and record minutes (adopt bylaws, appoint officers, approve actions)
Obtain an EIN/tax identification number (U.S.) or local equivalent
Apply for tax-exempt status with the relevant tax authority (e.g., IRS 501(c)(3))
Gather required documents for tax exemption (formation documents, bylaws, financials/budget, conflict-of-interest policy)
Implement a conflict-of-interest policy and document adoption
Set up accounting systems and a budgeting process
Open a business bank account in the nonprofit’s legal name
Register for state/local taxes as required (sales tax, payroll tax, etc.)
Register to solicit donations if required (charity registration/solicitation permits)
Register for required employment/payroll accounts if hiring staff or using contractors
Obtain required licenses/permits for activities (health, education, fundraising, professional licensing)
Maintain required ongoing filings (annual reports, renewals, tax filings)
File annual information returns and keep records of governance and finances
Maintain corporate records (minutes, bylaws, board roster, financial statements)
Review and comply with fundraising rules and donor disclosure requirements