Here are the steps to form a nonprofit corporation in Indiana. You should read this page in conjunction with the general section on forming a nonprofit corporation, which has additional steps listed that are applicable to all states. You should also familiarize yourself with Title 23, Article 17 of the Indiana Code (abbreviated here as "Ind. Code"), and with the Indiana Secretary of State's Business Services Division.
1. Choose a business name and check for availability
- Your nonprofit's name may not be the same as, or deceptively similar to, other corporate names on file with the Secretary of State (limited exceptions apply).
- The name must contain either "corporation," "incorporated," "limited," "company," or their abbreviations
- See Ind. Code § 23-17-5-1 for more information.
2. Recruit and/or appoint directors
- You must have at least three directors for your nonprofit corporation.
- Directors do not have to reside within the state of Indiana, nor do they have to be of a certain age.
- See Ind. Code § 23-17-12-1 for more information.
3. Incorporate your Nonprofit Organization
You should read the general section on forming a nonprofit corporation in tandem with the steps outlined here.
a. Prepare and file articles of incorporation with the Secretary of State
- Articles of Incorporation for Nonprofit Corporations explains what to include in your articles in order to qualify for 501(c)(3) tax-exempt status.
- You must file articles of incorporation with the Secretary of State.
- The filing fee is $30.
- Click here for a sample articles of incorporation.
- Read Ind. Code § 23-17-3-1 for more information on how to construct your articles. For example, the statute requires the following statement:
This corporation is a public benefit corporation.
- Note that you must file an annual Business Entity Report with the Secretary of State. The filing fee is $10, and the form can be filled out online at the Indiana Secretary of State's website. The information required on the report is basic business information, such as the names of all directors and officers and the business's principal location.
b. Create the bylaws
- There are no set criteria for the content of bylaws, but they typically set forth internal rules and procedures.
- Refer to Bylaws for Nonprofit Corporations for general information; for specific information see Ind. Code § 23-17-3-8 for more information.
- You are not required to file bylaws with the Secretary of State, but you must keep a copy at the nonprofit corporation's principal place of business.
c. Hold an organizational meeting
- See Forming a Nonprofit Corporation for details.
d. Create a Records Book
- You will need a records book to store important documents concerning your nonprofit corporation.
- See Ind. Code § 23-17-27-1 for specific information about record-keeping requirements under Indiana law.
4. Get your Employer Identification Number
Whenever you hire an employee in Indiana, you must inform both the IRS and the State of Indiana.
a. Federal
- Request an Employer Identification Number ("EIN") from the IRS. This can be done via an online application.
- For more on the EIN, see Forming a Nonprofit Corporation.
- The IRS details all of the necessary steps to complete, including verifying work eligibility and withholding allowances certificates, in Hiring Employees.
b. State
- See Indiana New Hire Reporting Center website for more information.
5. Register with state offices
a. Office of the Attorney General
- Any consultant you hire for fundraising purposes or any professional solicitor you engage to get donations must register with the attorney general's office prior to beginning a fundraising campaign.
- However, you do not need to register your nonprofit corporation with the Indiana Attorney General's Office if your nonprofit corporation solicits on its own behalf.
b. Department of Revenue
- You must register with the Indiana Department of Revenue for tax purposes.
6. Apply for tax exemptions
Once you've incorporated as a nonprofit corporation, you can start applying for tax exemptions.
a. Federal
- The IRS lists a series of questions to help you determine whether your organization is eligible for federal tax exemption.
- See Applying for 501(c)(3) Tax Exemption for more information on how to apply for tax-exempt status under section 501(c)(3) of the tax code.
b. State
- Once you have received your determination letter from the IRS, file Form NP-20A with the Indiana Department of Revenue to obtain state corporate income tax exemption.
- You must submit Form NP-20A to the Indiana Department of Revenue to apply for sales tax exemption.
c. Local
- See Forming a Nonprofit Corporation for details.