Starting a Nonprofit Corporation in New Hampshire 2024: Your Step-by-Step Guide

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How to Start a Nonprofit Corporation in New Hampshire

Are you passionate about making a difference in your community? Starting a nonprofit organization in New Hampshire can be a fantastic way to create lasting change and positively impact the lives of those around you. However, navigating the legal and regulatory requirements of starting a Nonprofit Corporation can be daunting, especially if you are new to the process.

This guide aims to simplify the process of forming a Nonprofit Corporation in New Hampshire by providing a step-by-step approach to ensure that your organization is set up for success from the start. At LLCBase, we understand that forming a nonprofit corporation can be an overwhelming experience, so we are here to help you achieve your goals every step of the way.

Start a Nonprofit Corporation

What is a Nonprofit Corporation

A Nonprofit Corporation is a legal entity organized and operated for purposes other than profit-making. The primary goal of a Nonprofit Corporation is to serve the public interest, promote a specific social cause, or support a charitable, religious, educational, scientific, or artistic mission. Unlike traditional for-profit corporations in New Hampshire, Nonprofit Corporations do not distribute profits to shareholders or owners. Instead, surplus funds are reinvested into the organization to further its mission and objectives. When starting a nonprofit corporation, consult the best formation service in New Hampshire to assist you.

Nonprofit Corporations are granted special tax-exempt status under Section 501(c) of the Internal Revenue Code in the United States, which exempts them from federal income taxes. Nonprofit Corporations may also be eligible for state and local tax exemptions. This tax-exempt status allows Nonprofits to receive tax-deductible donations and grants, making it easier for them to raise funds for their cause.

Some common types of Nonprofit Corporations include charities, foundations, social welfare organizations, trade associations, and religious institutions. These organizations play a vital role in society by addressing various social, environmental, and cultural issues, providing essential services, and enhancing the overall quality of life for communities.

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Steps to Form a New Hampshire Nonprofit Corporation

Below is an extensive overview of the steps to initiate a nonprofit corporation in New Hampshire:

Step 1. Choose a Name

The first step in starting a Nonprofit Corporation in New Hampshire is choosing an appropriate name for your organization. The name must be unique and distinguishable from other businesses registered in the state. You can conduct a preliminary name search on the New Hampshire Secretary of State‘s website to check the availability of your desired name. Additionally, the name should not include any prohibited words or phrases, such as “bank” or “insurance.”

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Step 2. Appoint New Hampshire Registered Agent

When forming a Nonprofit Corporation in New Hampshire, you must appoint Registered Agent in New Hampshire. The Registered Agent is responsible for receiving legal documents and correspondence on behalf of your organization. They must have a physical address in New Hampshire and be available during regular business hours. You can choose an individual or a professional Registered Agent service to serve in this role.

We have compiled a list of the best registered agent services in New Hampshire for your consideration. These services have a reputation for their trustworthiness and professionalism. With assistance from these experienced registered agents, your business in New Hampshire can be handled with the utmost confidence and efficiency.

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Step 3. Appoint Board Members and Officers

In New Hampshire, a Nonprofit Corporation must have at least three board members responsible for overseeing the management and operations of the organization. The board must also elect officers, such as a president, secretary, and treasurer. It is important to choose individuals who are passionate about your organization’s mission and have the skills to carry out their duties effectively.

Step 4. File Articles of Incorporation

To officially form a Nonprofit Corporation in New Hampshire, you must file the Articles of Incorporation with the New Hampshire Secretary of State. The filing fee is $100 for filing online, by mail, or in person. Your Articles of Incorporation must include the following required provisions:

  • Name of the Nonprofit Corporation
  • Purpose of the organization
  • A statement that the organization is a Nonprofit Public Benefit Corporation
  • Name and address of the Registered Agent
  • Statement of how the organization’s assets will be distributed upon dissolution

Optional provisions that can be included in the Articles of Incorporation are specific limitations or restrictions on the organization’s activities, indemnification of directors and officers, and any additional information that may be relevant to the organization.

Step 5. Apply for EIN

After filing your Articles of Incorporation, you must obtain an Employer Identification Number (EIN) from the Internal Revenue Service (IRS). This nine-digit number is used to identify your organization for tax purposes and is required when applying for tax-exempt status or opening a bank account. You can apply for an EIN online, by fax, or by mail.

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Step 6. Draft Bylaws and Policy

Bylaws are the internal rules and procedures that govern the operation of your Nonprofit Corporation. They should outline the roles and responsibilities of board members and officers and the process for holding meetings and making decisions. Additionally, your organization should adopt a conflict of interest policy to properly address potential conflicts involving board members or officers.

Step 7. Hold an Organizational Meeting

Once you have drafted your bylaws and conflict of interest policy, you should hold an organizational meeting with your board members and officers. During this meeting, you will adopt the bylaws and conflict of interest policy, elect officers, and make any other initial decisions necessary for the operation of your Nonprofit Corporation.

Step 8. Obtain Licenses and Permits

Depending on the nature of your organization, you may be required to obtain business licenses and permits in New Hampshire to operate legally. This can include local business licenses, zoning permits, and any specific licenses required for your organization’s activities. Consult your New Hampshire Secretary of State for more information.

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Step 9. Register for New Hampshire State Taxation

While many Nonprofit Corporations are exempt from federal income tax, they may still be subject to New Hampshire state taxes. You must register with the New Hampshire Department of Revenue Administration and may be required to file annual tax returns.

Step 10. Register for Charitable Solicitation

If your Nonprofit Corporation plans to solicit donations from the public, you must register with the New Hampshire Office of the Attorney General. This registration is required before legally soliciting charitable contributions in New Hampshire.

Fee Schedule for Starting a New Hampshire Nonprofit Corporation

Here are the fees associated when starting a corporation in New Hampshire:

  • Articles of Incorporation Filing Fee: $100 for filing online, by mail, or in person
  • Employer Identification Number (EIN) Application: Free
  • Form 1023 (Application for Recognition of Exemption) User Fee: $600 (for most organizations)
  • Form 1023-EZ (Streamlined Application for Recognition of Exemption) User Fee: $275
  • Statement of Information Filing Fee: $25 if domestic, $100 if foreign

Please note that these fees are subject to change, and additional fees may be applicable depending on the specific requirements of your nonprofit organization, such as obtaining licenses and permits. Always consult the respective agency websites and experts for the most up-to-date information.

Apply for 501(c)(3) Tax-Exempt Status

Once you have successfully formed your New Hampshire Nonprofit Corporation, the next crucial step is to apply for tax-exempt status under Section 501(c)(3) of the Internal Revenue Code. This status allows your organization to be exempt from federal income taxes and is essential for receiving tax-deductible donations and grants.

  1. Prepare IRS Form 1023 or 1023-EZ: The first step in applying for 501(c)(3) tax-exempt status is selecting the correct application form. Most organizations will use IRS Form 1023, the Application for Recognition of Exemption. However, smaller organizations may be eligible to use the shorter Form 1023-EZ. This streamlined application is only available to organizations with annual gross receipts of $50,000 or less and total assets of $250,000 or less. Review the eligibility requirements on the IRS website to determine which form is most appropriate for your Nonprofit Corporation in New Hampshire.
  2. Submit the Application: After completing the appropriate application form, submit it with the required user fee to the IRS. The fee will depend on your organization’s size and financial status, so consult the IRS website for the most up-to-date information.Keep in mind that the IRS review process can take several months. During this time, maintain good records and continue to operate your New Hampshire Nonprofit Corporation in compliance with state and federal regulations. If your application is approved, you will receive a Determination Letter from the IRS confirming your tax-exempt status.
New Hampshire State Tax Exemption

In addition to federal tax exemption, your New Hampshire Nonprofit Corporation may also qualify for state tax exemption. To apply, submit Form Form PA-29, Exemption Application, to the New Hampshire Department of Revenue Administration and the required supporting documentation. If approved, your organization will be exempt from New Hampshire state income tax and may qualify for exemption from other state taxes.

Ongoing Compliance

After successfully forming your New Hampshire Nonprofit Corporation and obtaining tax-exempt status, it’s essential to maintain compliance with state and federal regulations. This includes filing annual reports, paying state and federal taxes, and maintaining good records.

  • File Annual Reports: Your New Hampshire Nonprofit Corporation must file an annual report with the New Hampshire Secretary of State each year. This report, known as the Statement of Information, is due yearly within a specific time frame based on your organization’s registration date. Failure to file the report on time may result in penalties and suspending your organization’s corporate status.
  • State Taxes: Even with tax-exempt status, your New Hampshire Nonprofit Corporation may still be responsible for certain state taxes, such as sales tax permits on goods and services sold by your organization. Consult the New Hampshire Department of Revenue Administration’s website for more information on state tax requirements.
  • Federal Taxes: While your organization may be exempt from federal income tax, you must still file an annual information return with the IRS. This is typically Form 990, 990-EZ, or 990-N, depending on your organization’s size and financial activity. Consult the IRS website for more information on which form your New Hampshire Nonprofit Corporation should file.
  • Maintain Good Records: Keeping accurate and up-to-date records is essential for maintaining your Nonprofit Corporation’s compliance with state and federal regulations. This includes financial records, meeting minutes, and other organizational documents. Strong recordkeeping practices will help you stay compliant and provide a solid foundation for your organization’s growth and success.

FAQs

What is a nonprofit corporation in New Hampshire?
A nonprofit corporation in New Hampshire is a type of organization that has a charitable, religious, educational, scientific, literary, or other purpose considered beneficial to the community.
How do I start a nonprofit corporation in New Hampshire?
You can start a nonprofit corporation in New Hampshire by following these steps
What is the first step to starting a nonprofit corporation in New Hampshire?
The first step is to choose a name for your nonprofit corporation that is not already in use by another organization and complies with New Hampshire state guidelines.
What are the guidelines for naming a nonprofit corporation in New Hampshire?
A nonprofit corporation name must include the words “Corporation,” “Incorporated,” or “Limited” (or the abbreviation “Corp.,” “Inc.,” or “Ltd.”); must not suggest a purpose other than an approved activity; and must not be deceptively similar to an existing nonprofit corporation in New Hampshire.
How do I draft articles of incorporation for my nonprofit corporation in New Hampshire?
Articles of incorporation should include the name of the corporation, a statement about its purpose, statement about whether it is a public benefit or religious corporation in New Hampshire, number and type of authorized shares if the nonprofit issues them, names and addresses of initial directors, and the name and street address of the nonprofit’s agent for service of process.
Can I draft articles of incorporation by myself for my nonprofit corporation in New Hampshire?
Yes, you can draft articles of incorporation by yourself using New Hampshire state form.
Can I file articles of incorporation electronically for my nonprofit corporation in New Hampshire?
Yes, the articles of incorporation can be filed electronically thorugh the New Hampshire state website.
What is the registration fee for filing articles of incorporation for nonprofit corporation in New Hampshire?
The filing fee for articles of incorporation in New Hampshire for a nonprofit corporation $50.
Can a foreign corporation register for a certificate of authority in New Hampshire?
Yes, and it allows foreign corporations to legally do business iin New Hampshire.
What does it mean when my nonprofit corporation acquires tax exemption status?
It means the corporation does not make profits for shareholders and serves public interest enabling it to be exempted from paying some types of federal, state, and local taxes under certain conditions.
What is the cost of obtaining the tax exemption status for a nonprofit corporation in New Hampshire?
There is no specific cost apart from incorporation and ongoing costs to meet requirements for exemption.
Is there a certain amount of income threshold for being eligible for tax exemption in New Hampshire?
In New Hampshire, it is not for income, but for its primary purpose as well as 501c status.
Can foreign nonprofit corporations qualified for federal tax exemptions operate in New Hampshire?
Yes – A nonprofit corporation must first obtain a 501c tax status in order to qualify for federal tax exemption.
Do I need to obtain a business license for a nonprofit corporation in New Hampshire?
Not from the state government, as long as the nonprofit does not engage in or compete commercial activity.
Is there a need to register with the attorney general or government agency for fundraisers held within the state by a nonprofit corporation?
Yes, under certain conditions only – generally necessary when fundraisers will exceed $5,000 in gross revenue.
Can a nonprofit corporation’s name include a symbol or logo in its name?
Yes.
Does a nonprofit need to post or distribute annual financial reports in New Hampshire?
In New Hampshire, yes, for all public benefit corporations and religious corporations – with annual reports due by the first day of the fourth month of the fiscal year.
Can the board of directors pay themselves any compensation or salary?
It depends on state laws, the Bylaws of the organization, and financial conditions of the Nonprofit.
What is a 501c status?
501(c) is a specific section of the Internal Revenue Service (IRS) tax code that signifies nonprofit status 501(c)(3) is the most common for charities, churches, private foundations while different sections subsquiuent for social clubs,sports club and other purposes are also available.
Can a nonprofit corporation have a profit motive?
No, by definition, a nonprofit corporation is organized and operates for a purpose other than profit.
Who should register new-nonprofit corporation with the New Hampshire?s Secretary of State?
An incorporator or their attorney usually registers new-nonprofit corporation with the State of New Hampshire’s Secretary of State office.
Who is going to authorize?a nonprofit corporation to perform business in New Hampshire?
Answer organizations that are considered detrimental to the public welfare do not gain incorporation – otherwise authorizing nonprofits creating organizations in New Hampshire is done by filing articles of incorporation with the Secretary of State’s office
Is it necessary to elect a Board of Directors before I begin operations for my non-profit in New Hampshire?
Yes, a Board of Directors has to be elected before operations for your non-profit begin in New Hampshire as your nonprofit requires a set of officers in accordance with NH records.
Should every non-profit corporation apply for tax exemption status?
In general condition only public charities which come under the 501c are legible to apply for tax excemption.
What is an IRS letter of determination?
An IRS letter of determination is an official document from the IRS confirming that an organization meets the requirements for tax exemption under section 501c.
Is filing an IRS Form 1023, also required?
Yes,it’s required document you as the exempt organization fills out and gives to the IRS in seeking to obtain or retain the tax p exempt status.
How do I obtain an EIN for my nonprofit corporation in New Hampshire?
You can obtain an EIN by applying for a tax ID number at the IRS page or by phone or paper-filing.
Question:?Is forming-foundaton?models?an effective way?to qualify for tax exempt status?
Creating a model for a grant making foundation or a way to solicit public support,both of these can help your firm become legible 501c.
Question:?Should a nonprofit in any case consult an attorney before filing in New Hampshire?
Yes, ideally !?There are certain legal requirements that a nonprofit corporation needs to adhere to in order to qualify for state and federal tax exemptions in New Hampshire. Consulting with an experienced attorney can ensure proper compliance.
What is required to start a nonprofit corporation in New Hampshire?
The requirements to start a nonprofit corporation in New Hampshire include filing incorporation papers with the Secretary of State, drafting bylaws, and applying for tax-exempt status with the IRS.
What are the benefits of starting a nonprofit corporation in New Hampshire?
Benefits of starting a nonprofit corporation in New Hampshire include tax-exempt status, limited personal liability for directors, and the ability to solicit donations and receive grants from charitable foundations.
Do I need a board of directors to start a nonprofit corporation in New Hampshire?
Yes, a nonprofit corporation is required to have a board of directors in New Hampshire as part of its governing structure.
Can I use a standard template for nonprofit corporation articles of incorporation in New Hampshire?
Yes, the State of New Hampshire provides a standard template for nonprofit corporation articles of incorporation.
Do I have to use a lawyer to start a nonprofit corporation in New Hampshire?
You do not have to use a lawyer to start a nonprofit corporation in New Hampshire, but it is recommended to ensure all legal requirements are met.
How long does it take to get tax-exempt status for a nonprofit corporation in New Hampshire?
It can take several months to receive tax-exempt status for a nonprofit corporation in New Hampshire, but expedited processing may be available for an additional fee.
What is the filing fee for nonprofit corporation articles of incorporation in New Hampshire?
The filing fee for nonprofit corporation articles of incorporation in New Hampshire is $50.
Do nonprofit corporations in New Hampshire have to pay property taxes?
Nonprofit corporations in New Hampshire may be exempt from property tax for real estate they own and use for their charitable or public purposes.
Are there any annual reporting requirements for nonprofit corporations in New Hampshire?
Yes, nonprofit corporations in New Hampshire are required to file an annual report with the Secretary of State and may also need to file with the IRS to maintain tax-exempt status.
Can a nonprofit corporation in New Hampshire own property and assets?
Yes, nonprofit corporations in New Hampshire can own property and other assets as long as they are used for their charitable or public purposes.
What are the requirements for a nonprofit corporation to receive tax-deductible donations in New Hampshire?
A nonprofit corporation must be recognized by the IRS as a tax-exempt organization in order for donors to claim tax deductions on their donations in New Hampshire.
When do nonprofit corporations in New Hampshire have to file for annual sales tax exemption certificates?
Nonprofit corporations in New Hampshire must file for annual sales tax exemption certificates before making any sales in the state.
What is the maximum amount of compensation a nonprofit director or officer can receive in New Hampshire?
There is no specific maximum amount of compensation a nonprofit director or officer can receive in New Hampshire, but excessive compensation may jeopardize the organization’s tax-exempt status.
What is a registered agent for a nonprofit corporation in New Hampshire?
A registered agent for a nonprofit corporation in New Hampshire is a person or entity authorized to accept legal documents and other important mail on behalf of the organization.
Can a nonprofit corporation in New Hampshire conduct business activities?
Yes, nonprofit corporations in New Hampshire may engage in limited business activities as long as they support the organization’s charitable or public purposes.
What are the requirements for fundraising by a nonprofit corporation in New Hampshire?
Nonprofit corporations in New Hampshire are required to register with the Attorney General’s office before conducting any fundraising activities.
Can a nonprofit corporation merge with another organization in New Hampshire?
Yes, nonprofit corporations in New Hampshire can merge with other organizations as long as the merger is approved by the board of directors and complies with state law.
What is a conflict of interest policy for nonprofit corporations in New Hampshire?
A conflict of interest policy is a document that ensures all board members and officers of a nonprofit corporation in New Hampshire disclose and manage any potential conflicts of interest.
Do directors of a nonprofit corporation in New Hampshire have fiduciary duties?
Yes, directors of a nonprofit corporation in New Hampshire have fiduciary duties to act in the best interest of the organization and its charitable or public purposes.
Is a nonprofit corporation required to have an audit in New Hampshire?
Nonprofit corporations in New Hampshire may be required to have an audit if they receive a certain amount of revenue or federal grants, but smaller organizations may only require a review or compilation of their financial statements.
What is the process for dissolving a nonprofit corporation in New Hampshire?
The process for dissolving a nonprofit corporation in New Hampshire involves obtaining board approval, filing final tax returns and dissolution papers with the IRS and the state, and distributing any remaining assets according to the organization’s bylaws.
Can directors and officers of a nonprofit corporation in New Hampshire be liable for personal wrongdoing?
Yes, directors and officers of a nonprofit corporation in New Hampshire can be held personally liable for any wrongful actions, especially those that involve negligence or fraud.
How long does a nonprofit corporation have to request an exemption from the New Hampshire Business Enterprise Tax?
Nonprofit corporations in New Hampshire must request an exemption from the Business Enterprise Tax within 6 months of qualifying for nonprofit status.
What is the name reservation period for nonprofit corporation names in New Hampshire?
The name reservation period for nonprofit corporation names in New Hampshire is 120 days.
Can nonprofit corporations hire employees in New Hampshire?
Yes, nonprofit corporations in New Hampshire can hire employees to help fulfill the organization’s charitable or public purposes.
Does a nonprofit corporation need to hang on to financial statements in New Hampshire?
Yes, nonprofits in New Hampshire are required to maintain financial statements and records for 7 years.
Can a New Hampshire nonprofit corporation have apolitical issue advocacy?
Yes, it can. Political activities are prohibited, but they can conduct issue advocacy related to a charitable purpose.

Also Read

Why You Should Start New Hampshire Nonprofit

There are numerous reasons why you should consider starting a nonprofit in New Hampshire. One of the primary reasons is the state’s strong tradition of volunteerism and civic engagement. New Hampshire residents take pride in giving back to their communities and supporting causes that they believe in. By starting a nonprofit in the state, you can tap into this spirit of giving and rally support for your organization’s mission.

Additionally, New Hampshire offers a supportive ecosystem for nonprofit organizations, with a wealth of resources and networking opportunities available. From workshops and training sessions to funding and grant opportunities, the state provides a robust infrastructure to help new nonprofits get off the ground and thrive. With the help of established organizations and community leaders, you can navigate the intricacies of starting a nonprofit and chart a path towards long-term sustainability.

Moreover, starting a nonprofit in New Hampshire allows you to address critical issues facing the state and its residents. Whether it’s advocating for environmental conservation, promoting education and literacy, or supporting underprivileged communities, there are countless ways to make a positive impact in New Hampshire. By identifying unmet needs and mobilizing resources, you can play a significant role in improving the quality of life for individuals across the state.

Beyond the tangible benefits of starting a nonprofit in New Hampshire, there is also an intrinsic satisfaction that comes with working towards a meaningful cause. By dedicating your time and efforts to a cause you are passionate about, you can find purpose and fulfillment in making a difference in the lives of others. Whether it’s through direct service, advocacy, or education, you have the opportunity to effect positive change and leave a lasting legacy in your community.

In conclusion, starting a nonprofit in New Hampshire is an opportunity to create positive change, build meaningful relationships, and contribute to the social fabric of the state. With a supportive community, access to resources, and a shared commitment to philanthropy, New Hampshire offers an ideal environment for individuals looking to start a nonprofit organization. If you have a vision for a better future and a passion for service, consider taking the first step towards starting a nonprofit in the Granite State. Your efforts can make a real difference and inspire others to join you in the journey towards a more just and compassionate society.

Conclusion

Forming a New Hampshire Nonprofit Corporation and maintaining compliance with state and federal regulations are crucial to creating a successful organization. By ensuring your organization remains compliant, you can focus on fulfilling your mission and serving your community without worrying about legal or financial setbacks.

While this guide provides an overview of forming a Nonprofit Corporation in New Hampshire, it’s important to remember that each organization’s situation is unique. The process of starting a for-profit corporation is different from a nonprofit corporation. Seek the advice of experienced professionals, such as attorneys, accountants, or nonprofit consultants, to ensure your organization is set up for success from the start. Check LLCBase for more guides and resources for starting your business.

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