501(c)(3) Formation Checklist

Your Complete Roadmap to Nonprofit Status

2025 Edition • California Focus

🎯 Your Path to Tax-Exempt Status

This comprehensive checklist guides you through every step of forming your 501(c)(3) nonprofit. Check off tasks as you complete them, and use this as your master tracking document throughout the process.

Important: 1023-EZ Eligibility Requirements

Most new nonprofits qualify for the streamlined 1023-EZ form ($275 fee, 2-4 week processing). You must meet these criteria:

•Gross receipts ≤ $50,000 per year (for past 3 years)
•Projected gross receipts ≤ $50,000 per year (for next 3 years)
•Total assets less than $250,000
•Not a church, school, hospital, or medical research organization
•Not a foreign organization

Check full eligibility requirements →

Essential Tasks

2-3

Months Total

~$385

Total Fees (CA)

Stage 1: Pre-Formation Planning

1-2 weeks

Develop Clear Mission and Purpose

Create a compelling mission statement that defines your organization's purpose, the problem you'll solve, and who you'll serve. Include detailed program descriptions for IRS review.

Critical4 hours

Choose Organization Name

Select a unique name that isn't already in use. Check availability with state registry and consider domain/social media availability.

Critical3 hours$10

📍 California Specific:

Search at bizfileonline.sos.ca.gov. Consider adding "Inc.", "Corporation", or "Foundation". Name reservation: $10.

Recruit Board of Directors

Identify and recruit at least 3 unrelated individuals with diverse skills (finance, law, fundraising, programs). One person can hold multiple offices except President and Secretary.

Critical10 hours

Draft Conflict of Interest Policy

Create IRS-compliant policy ensuring board members disclose conflicts and abstain from related decisions. Required for 501(c)(3) status.

Critical1 hour

Draft Corporate Bylaws

Create internal governing rules including board structure, officer duties, meeting procedures, and dissolution clause (IRS requirement).

Critical3 hours

📍 California Specific:

Must comply with California Nonprofit Public Benefit Corporation Law. Include dissolution clause for asset distribution to another 501(c)(3).

Appoint Registered Agent

Designate someone to accept legal documents. Can be a director/officer (free) or professional service ($100-300/year).

High Priority30 minutes$0-300

📍 California Specific:

Must have physical California street address (no P.O. Box). Must be available during business hours.

Stage 2: State Incorporation

1-3 weeks

Prepare Articles of Incorporation

Create the legal document that establishes your nonprofit. Must include IRS-required language for 501(c)(3) eligibility.

Critical2 hours

📍 California Specific:

Use Form ARTS-PB-501(c)(3) which includes all IRS-required language. Available at sos.ca.gov.

File Articles of Incorporation

Submit Articles to Secretary of State to officially create your nonprofit corporation. Request certified copy for records.

Critical1 hour$30-45

📍 California Specific:

File by mail or in person. Fee: $30 + $5 per certified copy. Processing: 5-7 business days (standard), 24 hours (expedited +$15).

Obtain Federal EIN

Apply for Employer Identification Number from IRS. Required for bank account and tax exemption applications. Free and instant online.

Critical15 minutes

Hold First Board Meeting

Conduct organizational meeting to adopt bylaws, elect officers, set fiscal year, authorize bank account, and approve tax exemption process.

Critical2 hours

Open Nonprofit Bank Account

Open separate bank account with certified Articles, EIN letter, board resolution, and bylaws. Critical for maintaining nonprofit status.

High Priority2 hours

File Initial State Report

File required report listing officers, registered agent, and business address.

High Priority30 minutes$20

📍 California Specific:

File Form SI-100 within 90 days of incorporating. Fee: $20. Renewal required every 2 years.

Stage 3: Tax Exemption

2-4 weeks (1023-EZ)

Submit IRS Form 1023-EZ

File streamlined application for 501(c)(3) status. Online only via Pay.gov. Cannot save partial - complete in one session.

Critical2 hours$275

Apply for State Tax Exemption

Apply for exemption from state income tax after receiving federal 501(c)(3) determination.

High Priority1 hour$25

📍 California Specific:

File FTB Form 3500A with copy of IRS determination letter. Fee: $25. Processing: 4-6 weeks.

Register with State Attorney General

Critical1 hour$25

📍 California Specific:

File Form CT-1 with Registry of Charitable Trusts within 30 days of receiving assets. Fee: $25. Annual renewal via RRF-1 required.

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Disclaimer:

This checklist is for informational purposes only and does not constitute legal advice. Requirements may vary by state and individual circumstances. Consider consulting with a nonprofit attorney for complex situations. Last updated: August 2025.