You formed the corporation, filed the paperwork, and received confirmation from your state.
So, is your organization ready to operate, accept donations, hire employees, or apply for federal tax exemption?
Not quite.
Forming the corporation is an important milestone, but it is only the beginning. If you are learning how to start a nonprofit, the next steps focus on building a solid operational and compliance foundation. This may include obtaining an EIN, adopting bylaws and other internal policies, opening a nonprofit bank account, applying for federal tax-exempt status when appropriate, and maintaining ongoing filings.
But what should you do first?
Following a clear sequence can make the process easier and help you avoid missed responsibilities.
Below, we walk through the practical steps that come after incorporation and explain what you need to do to move your organization from legal formation to active operation.
1. Confirm Your Formation Documents
Start by collecting the documents you received after incorporation. Keep your approved Articles of Incorporation, amendments, bylaws, board resolutions, and state correspondence together in a secure location.
Why start here? These documents establish the organization’s legal structure and may be needed for banking, tax applications, grants, and future filings. The IRS also requires an organizing document when an eligible organization applies for recognition under Section 501(c)(3). IRS guidance explains what corporations generally need to provide.
2. Get an Employer Identification Number
Next, obtain an Employer Identification Number, or EIN, from the IRS. Your organization generally needs its own EIN even if it does not have employees. An EIN is also required before filing Form 1023 for federal recognition under Section 501(c)(3). The IRS provides the EIN application at no cost.
What should you do after receiving it? Save the EIN confirmation with your formation records. You will likely use the number for banking, tax filings, grant applications, and other official transactions.
3. Hold the First Board Meeting
Formation creates the corporation, but the board still needs to implement its governance structure. Schedule an initial board meeting and document the decisions made.
Depending on your organization and state requirements, the board may approve bylaws, elect officers, authorize a bank account, adopt a conflict-of-interest policy, and approve initial activities or budgets.
Keep written minutes and signed resolutions with your corporate records. Good documentation creates a clear record of how important decisions were made.
4. Open a Separate Bank Account
Once the organization has its EIN and required formation documents, set up a bank account in the corporation’s name. Keeping nonprofit money separate from personal funds helps create cleaner financial records and makes transactions easier to track.
The bank may request documents such as your formation paperwork, EIN confirmation, bylaws, and board authorization. Requirements vary by institution.
5. Apply for Federal Tax-Exempt Status
If the organization intends to seek Section 501(c)(3) recognition, the next major step is applying to the IRS. Most organizations use Form 1023, while eligible organizations may use Form 1023-EZ. The IRS requires electronic submission through Pay.gov. Form 1023 instructions explain the application and supporting documents.
Do not assume that forming a nonprofit corporation automatically makes it federally tax-exempt. State incorporation and federal tax exemption are separate steps.
When should you file? Generally, an organization that submits Form 1023 within 27 months after the end of the month in which it was legally formed and receives approval can have its exemption recognized from its formation date. IRS rules explain this timing.
6. Check State and Local Requirements
Federal recognition is not the end of compliance. Your state may require charitable solicitation registration, periodic corporate reports, tax registrations, licenses, or other filings.
Create a compliance calendar listing each filing, renewal, registration, fee, and deadline. Check the relevant state agency websites regularly because requirements and deadlines can change.
7. Set Up Basic Operating Systems
Now move from formation paperwork to everyday operations. Decide who will handle bookkeeping, donor records, meeting minutes, contracts, payroll, and compliance reminders.
A simple structure can include:
- A folder for formation and governance records
- A folder for financial documents
- A donor and contribution record
- A board meeting and minutes folder
- A calendar for federal, state, and local deadlines
Clear responsibilities also matter. If everyone assumes someone else is handling a filing, a deadline can easily be missed.
8. Prepare for Ongoing IRS Filings
After formation and tax-exempt recognition, keep watching federal filing requirements. Many tax-exempt organizations must file an annual return or notice, such as Form 990, Form 990-EZ, or Form 990-N, depending on their circumstances. The IRS annual filing guidance outlines who generally must file and which organizations are excepted.
Why does this matter? Failing to file a required return or notice for three consecutive years can result in automatic revocation of federal tax-exempt status. Set reminders well before deadlines and keep copies of submitted filings.
Keep Building After Incorporation
The steps to starting a nonprofit do not end when the state approves your corporation. Formation gives the organization its legal structure; the work that follows helps turn that structure into a functioning organization.
If you are still deciding how to form a nonprofit corporation, it helps to plan these post-formation tasks before filing. Beacon Nonprofit can also help you navigate the formation process and prepare for the responsibilities that follow incorporation.
