First and foremost, the name you choose to file for your nonprofit In Indiana must include “corporation,” “incorporated,” “limited,” “company,” or a corresponding abbreviation. Secondly, the name must be unique and unlike any other entity name registered with the state. To check for naming conflicts, conduct a Business Entity Search (or as many as needed).
If needed, you may be able to file an Reservation of Business Name form (download only) to reserve the name while in formation so it’s not taken by another business or nonprofit. Most people file online using INBiz.
Your Indiana Registered Agent is there so that your nonprofit always, and officially, receives important paperwork on time like state filings, legal notices, important tax forms, and so on. This is why they must be either a registered individual citizen or business entity in the state, have a physical street address, and be available during all regular business hours/days.
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 or BizFilings. They handle this and more depending on your startup package.
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. 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 Serve Indiana page (Board & Governance section) because it has more details. 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 for newcomers.
Incorporated non-profits need to have Bylaws, or rules, that first and foremost determine how it’s governed. They also state the mission of the non-profit and steer it’s course. They’re essential! Common bylaws touch on topics like:
If this is all new to you, use a savvy Corporate Bylaws Template which you can customize for your non-profit and get an idea of the paperwork-side of bylaws.
Once all the previous steps are covered, and you and your board/members are ready, incorporators should sign and file or “execute” Articles of Incorporation (also see these Filing Instructions) with the Sec. of State. Information you’ll need includes:
Filing Fee: $30
What we’re talking about here is a physical book, or some call it a binder, where you put copies of the most important documents that comprise your non-profit organization: formation/registration, core licenses & permits, corporate minutes, huge contracts, annual reports and taxation documents, etc.
To get one for your non-profit you can grab a quality records book at any nearby office supply store, order them online through Amazon, or get a professional Corporate Kit which let you brand the book/slip case, provide blank certificates, and more for as little as $99.
For your first meeting assemble incorporators/directors and get ready to establish the foundation of your non-profit. 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:
If you found the bylaws template useful, check out a similar Corporate Minutes Template you can also customize and use to provide initial structure until you and your board get the hang of things should it be necessary. Another good resource is this All About Boards guide.
An EIN, or Employer Identification Number, is a 9-digit number required by all business and non-profit entities under law in order to effectively track their financial activity. Think of it as a social security number for your non-profit, but it will also make it possible to legally hire paid employees if needed and open up a bank account in Step 10.
Almost every transaction your non-profit engages in will require an EIN. That said, you can get one quickly and free of charge by applying online through the IRS Website.
Now’s the point to ensure your non-profit is 100% compliant in terms of not only licenses/permits, but state and federal taxes. You should be able to apply for tax exempt status now that the corporation is established.
Because of all the great positive ways the nonprofit and small business community intertwine, you should also consider bookmarking the Indianapolis Small Business Administration and Business Services Guide.
Where you choose to bank is no small matter when we’re talking about an incorporated nonprofit. Often founders or their close directors often use personal accounts, but that’s not going to fly with a nonprofit. Instead you and your CFO, if you have appointed one, need to find the best bank or credit union to handle the business banking services you’ll need to grow your initiative.
Look at different fee-structures, perks, incentives, and overall costs and savings and think ahead! You could start with a smaller bank for better deals, then switch to a much larger bank when your platform demands it. To get started, check out this quick breakdown of Non-Profit Accounts.
If you’d like help forming a nonprofit, here are two great options:
Swyft Filings ($49 + state fees) is ideal if you’re on a budget but refuse to sacrifice quality. However if you’d like to have access to an attorney past nonprofit formation, Rocket Lawyer ($99 + state fees) is the best option.Visit Swyft Filings Or Visit Rocket Lawyer
Note that this article on how to form an Indiana nonprofit isn’t a legal document or legal advice. It’s for informational purposes and the information above is subject to change. For specific legal questions regarding how to form an Indiana nonprofit or business in general, please consult with a lawyer or other accredited professional.