Step 1) Secure Your Nonprofit Name
To secure and register your nonprofit name in it should be unique, not too similar to another registered entity name, and shouldn’t contain any restricted wording as defined by Missouri law. To check for naming conflicts, first conduct a Business Entity Search through the state and be sure to check with section 355.146 in the state code (subject to change).
If needed, you can file an Application for Reservation of Name through postal mail with the Missouri Secretary of State to protect the name for up to 180 days or until filing Articles of Incorporation in Step 5.
Filing Fee: $25Quick Note: Before you commit 100% to a name, you may also want to check that there’s a decent URL available for your business. Use WEEBLY to search your options. If there’s a quality domain name for purchase, we advise buying it right away. Even if launching a business website isn’t on your radar right now, it’s going to be soon, and you might as well nail down a domain name that’ll make it easy for customers to find you!
Step 2) Appoint A Registered Agent
A Missouri Registered Agent is required of your nonprofit for compliance purposes.
This registered, or statutory agent, can be an individual registered citizen or a corporation authorized to conduct business in the state. They'll also need to provide a street address, for your registered office and hold regular M-F business hours.
That said, you can hire an outside professional service and expect to pay up to $160/year, or get a certified agent free when you incorporate your nonprofit with a service like IncFile. They handle this and more depending on your startup package.
Step 3) Select Incorporators & Directors
What are incorporators? That’s easy, this is the individual (you can have more than one) who signs and then files your nonprofit Articles of Incorporation with the state in step 5.
They don’t have to be an officer or director, but you do need President, Treasurer, and Secretary officers. Speaking of directors, you’ll need to select at least 3 initial directors to oversee the nonprofit during formation until new more official directors can be voted on/in during your initial meeting in Step 7.
Bookmark the UMKC page because it has more of the finer details in terms of board responsibilities along with great nonprofit resources. To be frank, working with an attorney or incorporation provider really comes in handy during this foundational step as well because there are definitely corporate formalities to learn.
Step 4) Draft Nonprofit Bylaws
This is somewhat complex subject, but here are two primary notes in state law concerning nonprofit bylaws:
"The code or codes of rules, other than the articles, adopted pursuant to this chapter for the regulation or management of the affairs of the corporation, irrespective of the name or names by which such rules are designated. Bylaws shall not include legally enforceable covenants, declarations, indentures or restrictions imposed upon members by validly recorded indentures, declarations, covenants, restrictions or other recorded instruments, as they apply to real property."And this short section,
"The incorporators or board of directors of a corporation shall adopt bylaws for the corporation. The bylaws may contain any provision for regulating and managing the affairs of the corporation that is not inconsistent with law or the articles of incorporation.'If it'll be helpful, check out a savvy Corporate Bylaws Template with an example that you can customize yourself as well.
Step 5) File Articles Of Incorporation
Once you and your team decide it’s time to form the initial corporation, file your nonprofit Articles of Incorporation or submit them via mail to the Sec. of State. Information you’ll need includes:
- The name, type, duration of existence, and statement of purpose (provisions for nonprofit vs corp);
- Complete names & addresses of registered agent (and office), incorporators, and directors.
- Any specific provisions/bylaws set forth as part of the internal operations of your organization.
- A stipulation of apportioning assets to any 501(c)(3) upon termination of your organization.
Filing Fee: $25
Step 6) Start A Nonprofit Records Book
What we’re referring to here is a physical, often very nice looking book, folder or binder where copies of critical pieces of paperwork are kept and managed. And yes, that’s along with the many modern ways of tracking and compiling information on your nonprofit. They’re somewhat of a corporate formality, but extremely common and highly-advised.
You can pick one up at pretty much any office supply store or online through Amazon of course, but we’re huge fans of savvy-sleek Corporate Kits which include gorgeous records books, binders, blank certificates and more which you can brand for as little as $99.
Step 7) Conduct Initial Meeting
For your first meeting assemble incorporators/directors and get ready to establish the foundation of your nonprofit. Be sure to record “minutes” of the meeting and all attendees and have it signed by directors for your records book. Topics you’ll cover will vary but should include:
- Voting on the appointment of critical officers;
- Voting on and approving/amending bylaws;
- Establishing a tax year as well as an accounting period;
- Approving initial transactions, committees, and more.
Step 8) Get An EIN
An EIN is very straightforward. It’s a 9-digit identifying number like a social security number but for business entities including nonprofits. You’ll use it to setup a bank account and hire paid employees if needed, then the appropriate agencies will use it to track your financial activity.
The quickest and easiest way to get one is by submitting a request directly through the IRS Website.