Forming a Delaware nonprofit LLC has many benefits, both to you as the owner and to those in the community that you serve. Not only can you impact those around you, but research shows that Delaware nonprofits supply tens of thousands of jobs to the state’s workforce. Nonprofits also give a significant sum of money to causes in the area. Are you thinking of forming a Delaware LLC? Use this handy article to help you get through the process and understand what you’re getting into, so you can reap the rewards and share the benefits with those around you.
Create a Mission
The most important first step you can take when you form a nonprofit is to identify your mission. Because you aren’t in it to turn a profit, this mission is likely to be philanthropic or charitable. At this stage, you will set your business up as being exempt. This tax status prevents you from overpaying members or participating in political types of activities.
Name Your Business
Often creating a mission naturally helps you create a name for your company. Other times, you may need to put in a bit of time and effort to come up with an ideal moniker for your business. Be sure you choose a name that is easy to remember and easy to pronounce. Before you become attached to a specific name, do a trademark search to be sure no part of it is protected. You can also do a state search to ensure that the name isn’t already taken. It’s a good idea to have a couple of back up names in case your first one doesn’t work out.
Hire a Registered Agent
A registered agent is someone who can help you by mailing and receiving legal and tax documents. If you are not a resident of Delaware, it is required to have a registered agent who has a physical address in the state and operates during normal business hours. A registered agent may be a single person or an entity that accepts paperwork on behalf of your nonprofit. A registered agent will protect your data and privacy so it’s a safe choice to use one for your company, and in some cases, is required.
Files the Papers and Register for Your EIN
Next, you’ll file your nonprofit articles of registration in the state of Delaware. This is a simple form that allows you to provide pertinent information for your business, including name, location, purpose, as well as other basic data. At this time, you can also register for your employee identification number, or EIN. Once that’s complete, you’ll be ready to file your tax status and obtain the licenses and permits you need to operate your non-profit.
Taking it step by step is the best way to form a Delaware nonprofit LLC, as each step will lead you to the next one. Running a nonprofit can be a rewarding venture and if you’re ready to get started, contact Corporation Center today and we can help you with the paperwork as you get your business off the ground and running.