Thursday, September 15, 2011

Confirmation for your Name Reservation

Hey just wanted to do a quick post.

If you sent the letter to reserve your name (see this post) then about 1-2 weeks later you should get a letter confirming that one of the names you wanted has been reserved for you for the next 60 days.

The letter will look something like this:


1. This is the name and address of the person who is doing the incorporating.

2. This is the name that is reserved for you, from the first of the three names you chose for the Name Reservation Form.

3. Finally, this part is of your Reservation Number (which hopefully you won't need), and the start and end dates for the for your reservation. Once you get your Name Reservation, you will want to fill out the Articles of Incopration.

Hope this helps.

Wednesday, August 24, 2011

Filling out your Name Reservation Form (1st of 4 parts to become a 501(c)3)

In California (and other states) the first step to creating a Non-Profit (501(c)3) is coming up with unique name, and then reserving the name for your non-profit.

This is a 3 step process. Which is as follows.

1. Before you do anything else figure out a name you want for your non-profit.

2. Once you have the name you need to check if it available. To do this go to the Secretary of State's Name Search webpage, and do a search for the name you want (the link is for the California name search webpage, if you are trying to incorporate in another state, then do a google search for: "Name availability search for <State Name>."

Make sure to 'check' the Corporations box, not the Limited Liability Corporations, or Entity Number boxes. (see below picture). For the example, I'm pretending that I want to call the non-profit: "Red Herring Inc."







Once you search for a name you should get a list, of how many organizations have similar names (see below).








For the "Red Herring" name there are 4 other organizations that have that name. However, we lucked out because all of these organizations are 'suspended', 'disolved', or 'forfeited'. This means that I can go ahead and register "Red Herring" as the name for my non-profit.

If one of the organizations had said 'active', then I would have had to change the name of my non-profit, or made it different. To make it different I would have either had to specify a location like: "Red Herring of Los Angeles," or gotten more specific, like: "Red Herring Comedy Center."

However, no active organization has this name so use this name and go onto the next step or reserving my name.

3. Now we have to fill out the form to reserve the name with the Secretary of state.

The CA form can be downloaded here.

This form is very straight-forward, just fill in 1. your name and address, and 2. the name(s) you want, (because there is a chance that your name may be taken the form allows you to put down 3 different alternatives to a name. The state will give you the first one that is available.

There are a few other boxes in the form, but you don't need to fill them out.

Here is my example:

















Once this form is filled out, mail it and a check for $10 dollars, to the Secretary of States address, which is on the top of the first page of the form (note you don't need to include the first page of instructions that is included in this form).

Once you have done these three steps, all you have to do is wait for a letter to come back from the Secretary of State saying that they have reserved the name for you for 60 days, this means that you have 60 days to complete the Articles of incorporation and send them in.

(Note: because the name will be reserved in your name, you will be the one who has to fill out the Articles of Incorporation which is part two of four in getting your non-profit 501(c)3 tax-exempt status).

Hope this helped.

-- Matthew

Basic Steps for a Non-Profit.

So I am helping start a Non-Profit for a College ministry that I have been a part of for the last 4 years. I figured that as long as I am figuring out the process of how to create a non-profit I should write it down, so that anyone else who wants to start a non-profit can more easily.

So for my first blog I will list the 4 forms that are required to completely get your non-profit status. Note: that I am doing this in California, so the first three forms may be a little different in other states, but it shouldn't be that much different.

Ok, so to start a non-profit you need to fill out 4 forms. The first three of the forms are done with the state that you are in. The last form is filed with the government and is the actual Tax Exempt application.

The forms are:

1. Fill out the Name Reservation Form (1-2 page form), Cost: $10
2. File the Articles of Incorporation (1 page form), Cost: $30
3. Create a ByLaws for your organization (5-8 Pages), No Cost (But Nolo's book includes a CD with a ByLaws that is easily filled out).
4. Fill out the Tax-Exempt Application (28 Pages), Cost: $400-800 (may be reduced to $200 soon).

So these four steps are all that is required to form your non-profit. The total cost is either $440, or $840, depending on how much you think you will make your first year.

During the next few months, as I go through the process of starting a non-profit, I will be posting step-by-step blogs that should help you create a non-profit easily and effectivily.

-- Matthew