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 23701(d). Alternatively, federal tax exemption under the Internal Revenue Code, section501(c)(3) can be acquired.

Formation requires filing the Articles of Incorporation with the California Secretary of State. As before, you’re at liberty to compose a document of your choosing or going through Form ARTS–PB-501(c)(3).

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 23701(f). Additionally, or as an alternative, a state tax exemption under Internal Revenue Code section 501(c)(4) 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’re 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 23701(d) and 23701(f), Internal Revenue Code section 501(c)(4), 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’re 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 6210, 8210 or 9660.

Tax Requirement

Most corporations are obliged to pay no less then $800 to the California Franchise Tax Board 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 does not provide licensing for corporations.