New Jersey 501c3 Corporations: Tax Exempt Organizations Non Profit

New Jersey Non Profit Incorporation

New Jersey has established a set of guidelines that categorize non profit organizations. State law prevents non profit organizations from generating profits for its principals. They also have to present yearly documentation of their operation to ensure they maintain their tax-exempt requirements. The state also allows limited liability to the principals of non profit organizations from any liability that the company may incur.

Forming a Non Profit Organization in New Jersey

When forming a non profit organization in New Jersey, you must first convene a meeting of the prospective directors to discuss the legal requirements of the state, bylaws of the organization and budget. You then choose a unique and unregistered name for the organization and submit this information along with the name and address of the organization and its directors to the Secretary of State in order to attain the articles of incorporation for the organization. Once approved, the organization then files for an Employer Identification Number (EIN) from the IRS to get permission to employ workers and conduct other business-related procedures.

After meeting all the registration requirements, the organization can file for tax-exempt status. To attain this, you must present details of proposed activities and budgets for the next three years to the IRS. The final step in this process involves applying to the state for recognition as a charitable organization. This gives the organization permission to solicit financial support from both the state and private sources.

For more information

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