Tennessee 501c3 Corporations: Tax Exempt Organizations Non Profit

Tennessee Non Profit Incorporation

The state of Tennessee has over 27,000 active nonprofit corporations operating within the state. As a result, the Tennessee Department of State has implemented various services and resources (including a new website) to make it easier for nonprofits wanting to incorporate within the state to meet the required legal and statutory requirements listed under the Tennessee Non Profit Corporation Act.

Forming a Non Profit Organization in Tennessee

The first step to forming a non profit organization in Tennessee is preparing and filing articles of incorporation with the Secretary of State and paying an initial state-imposed filing fee of $100. The articles of incorporation must include specific language indicating that the corporation is a public charity or mutual benefit corporation in order to obtain the full 501(c) (3) tax-exempt status benefits.

Additional information such as the proposed corporate name (must be unique from any other registered name on file), intended purpose, name and street address of the registered agent and the name and address of each director must be included in the articles of incorporation. At least one incorporator must sign the articles of incorporation.

Benefits of Obtaining the 501c3 Corporations Tax Exempt Status

Non profits that qualify for the 501 (c) (3) or the tax-exempt status obtain the special personal liability protection and additional tax advantages available within the state including:

• Eligibility to accept grants from government agencies and private organizations
• Possible exemption from paying property taxes
• Applying for special nonprofit mailing rates at reduced costs
• Exemption from paying federal and state income taxes

For more information

• Non profit overview
• Is a 501c3 right for you?