Non-profit organizations differ from LLCs insofar as they must apply for tax-exempt status from the IRS as well as the state in which they operate. Additionally, non-profit organizations rely on fundraising, and they must deal with other factors unique to organizations operating in public welfare or social or charitable realms.
When it comes to incorporating a regular LLC, some states may be more advantageous than others. Is the same the case with non-profits?
The short answer is that with non-profits, you’re likely best off registering in the state in which you’ll be operating. This is because, as a tax-exempt organization, state tax benefits are irrelevant.
There are some factors to take into consideration, however, and there are some interesting studies that discuss this topic precisely.
New York and California are 2 states known for placing heavy regulations on non-profits.
Delaware, Nevada, and Arizona are viewed as states that are less regulatory and more friendly to organizations.
Ready to get started? Check out the top non-profit filing services below:
- Dedicated exclusively to incorporating small businesses and non-profits
- Timely, professional incorporation services
- Recognized by Entrepreneur Magazine
Incfile’s award-winning approach has helped more than 250,000 small businesses incorporate. The company takes care of all the paperwork and hurdles of opening a non-profit, from registering a name to gaining tax-exempt status from the IRS. Incfile offers timely, professional services with lifetime customer support and a few handy bonuses, including a free business tax consultation.
2. Swyft Filings
- Extensive learning center with helpful guides
- Live chat and responsive customer support
- Quick and convenient non-profit incorporation
Swyft Filings not only offers incorporation services but supplements them with additional materials such as state guides and industry reports. These qualities result in productive, informed clients who can choose to invest as much or as little energy in the process as they wish. The company offers a live chat, exemplary customer support, and perfect transparency. Overall, Swyft Filings is a highly dependable service that empowers its clients with information they can use down the road.
3. Rocket Lawyer
- Create your own documents quickly
- Attorneys available for legal advice
Rocket Lawyer offers small business owners peace of mind and confidence as they begin filing their business with the government. Unique to Rocket Lawyer is its document creation service, which saves clients time and money by allowing them to create and customize their own documents under the protection of attorneys. Services cater to LLCs, corporations, and non-profits alike, and unlike many other services, they include post-incorporation legal guidance to keep clients on the right track.