Here are the steps to form a nonprofit corporation in Ohio. 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:
Chapter 1702 of the Ohio Revised Code (abbreviated here as "Ohio Rev. Code"), The Ohio Secretary of State's Business Services, and The Legal Information for Nonprofit Corporations created by the Ohio State Bar Foundation and the Ohio Association of Nonprofit Organizations.1. Choose a business name and check for availability
- Your nonprofit corporation'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).
- Search the Ohio corporate filings database to determine name availability.
2. Recruit and/or appoint directors
- You must have at least three directors for your nonprofit corporation.
- Directors do not have to reside within Ohio, nor do they have to be of a certain age.
- The Ohio Attorney General has a Guide for Board Members which explains the duties and responsibilities that directors owe to a nonprofit organization.
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 your articles of incorporation with the Ohio Secretary of State. Use Form 532.
- The filing fee is $125.
b. Create the bylaws
- There are no set criteria for the content of bylaws, but they typically set forth internal rules and procedures.
- 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.
- Refer to Bylaws for Nonprofit Corporations for general information.
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 Ohio Rev. Code § 1702-15 for specific information about record-keeping requirements under Ohio law.
4. Get your Employer Identification Number
Whenever you hire an employee in Ohio, you must inform both the IRS and the state of Ohio.
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 Ohio New Hire Reporting Center for more information.
5. Register with state offices
a. Ohio Attorney General
- Before engaging in any solicitation activities you must register with the Attorney General by filing the Charitable Organization Registration Form.
- See Charitable Organization Information Network to register online.
- Refer to the Attorney General's Information Sheet for more information.
- The filing fee depends on the nonprofit corporation's estimated contributions for the coming year.
- The fee is waived for nonprofit corporations with estimates less than $25,000. The filing fee is $50 those with estimates between $25,000 and $100,000.
- Additionally, if you have solicited more than $5,000 in the previous year, you will also need to file a Verification of Filing with the IRS Form with the Attorney General on an annual basis. (You can also file the form via the Charitable Organization Information Network).
b. Department of Revenue
- You must register for state business taxes. The Ohio Business Gateway has information on your nonprofit corporation's tax responsibilities.
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 how to apply for tax-exempt status under section 501(c)(3) of the tax code.
b. State
- The Secretary of State's Legal Guide for Nonprofit Organizations provides information on how to obtain corporate income, sales, and property tax exemptions for your nonprofit corporation.
c. Local
- See Forming a Nonprofit Corporation for details.