The Texas Secretary of State's office defines a nonprofit corporation as a corporation where "no part of the income of which is distributable to members, directors or officers." This office regulates the formation of nonprofit corporations in Texas and guides aspiring nonprofit owners through the process. Before you open your nonprofit corporation's doors to better the Texas community, you need to establish your corporation within the state and follow the guidelines set forth by the state and the Internal Revenue Service.
Instructions
1. Name your nonprofit corporation. The Texas Secretary of State prohibits nonprofit corporation names that are similar or "deceptively similar," which includes names where only articles or prepositions are different, to other state business or nonprofit names. Nonprofit corporations in Texas do not have to use an organizational designation, such as "Corp." for a corporation or "LLC" for a limited liability company.
2. File a Certificate of Formation for a Nonprofit Corporation form with the Texas Secretary of State. Access this form from the Secretary of State's website. This form requires you to include your nonprofit's name; registered agent, which can be your name and address; board of directors information; membership information; the purpose of your nonprofit corporation and its provisions. Submit the completed form to the Secretary of State's office.
Texas Secretary of State
P.O. Box 13697
Austin, TX 78711
512-463-5555
sos.state.tx.us
3. Apply for tax-exempt status with the Texas Comptroller of Public Accounts. Only those nonprofit corporations in Texas that "devote all or substantially all" of its activities to charity and derive its funding "from sources other than fees and charges for its services" can apply for tax-exempt status, according to the Texas Comptroller of Public Accounts. If your nonprofit corporation qualifies, submit a Texas Application for Exemption---Charitable Organizations to the Texas Comptroller of Public Accounts' office.
Texas Comptroller of Public Accounts
Exempt Organizations Section
P.O. Box 13528
Austin, TX 78711
512-463-4600
window.state.tx.us
4. Join the Texas Association of Nonprofit Organizations. This organization connects you to other nonprofit corporations in the state and provides support, helping you to "manage and lead more effectively, save money through group-buying opportunities and engage in critical policy issues affecting the sector."Membership will enrich your nonprofit corporation as it grows in Texas.
