The first step in forming a 501(c)(3) charity in Illinois is to file your Articles of Incorporation. This article will help you through the seven procedures necessary to submit the Articles of Incorporation in Illinois and formally create a nonprofit.
Table of Contents
Starting Over
In order to incorporate a domestic nonprofit organisation in Illinois, you must first submit the Articles of Incorporation (General Not for Profit Corporation Act). This tutorial covers every step you need to take to properly complete this paperwork and get started on the path to founding an Illinois charity.
Step 1: List the Name of Your Nonprofit
Step 2: Select a Registered Agent
Step 3: Name Your Initial Board of Directors
Step 4: Describe the Purpose of Your Nonprofit
Step 5: Include Any Additional Attachments
Step 6: List Your Incorporator Details
Step 7: Documents for Formation
Step 1: List the Name of Your Nonprofit
The first step in completing the Illinois Articles of Incorporation is to enter the name of your organisation. If you haven’t yet decided on a name for your organisation, these are the prerequisites for naming a nonprofit in Illinois:
The name of your charity must be distinct from any other name on record in the state of Illinois, including any reserved names.
If the selected name suggests that the organisation is not a nonprofit corporation, the initials “NFP” must be added at the end of the name.
Without the consent of the Illinois Secretary of State, your nonprofit’s name cannot incorporate terms or phrases affiliated with a political party.
Look for the Availability of Your Name
Following the selection of prospective names — preferably, at least four or five — it’s essential to check their availability in your state. You may do this by completing the four suggested searches listed below.
Search for Illinois Corporations/LLCs
A nonprofit company must have a distinct name in order to exist in Illinois. You may quickly verify whether your desired name is available by utilising the Illinois Corporation/LLC Search tool.
Domain Name Lookup
We highly advise you to additionally check to see whether your company name is accessible as a web domain (URL). Even if you don’t intend to construct a company website right away, you should purchase the domain name to prevent others from gaining it. It’s a completely free search.
Federal Trademark Lookup
Using the federal Trademark Electronic Search System, you may quickly see whether your preferred charity name has already been trademarked. Even if you do not intend to create your charity right immediately, this is essential.
You may register for a trademark for your organisation after you have confirmed that no one else has previously trademarked your selected name.
Search the Web and Social Media
A good social media presence can help you reach out to prospective funders as well as customers who will employ your services. As a result, before registering your preferred name, check the web and prominent social media platforms for it to confirm it is accessible on all platforms where you want to advertise your group.
Step 2: Select a Registered Agent.
In Illinois, the Articles of Incorporation must be filed with a registered agent. This job may be filled by an Illinois person or a domestic or international organisation authorised to operate as a registered agent. A registered agent’s duties include receiving and sending service of process paperwork for the company as well as acting as the entity’s point of contact. Your company cannot act as its own registered agent.
This section’s requirements include:
The name of your designated registered agent
The street address of your selected registered agent (no PO Boxes)
Step 3: Form Your First Board of Directors
In article three, include the entire number of directors on your nonprofit’s original board of directors, along with their names and addresses. Your organisation must have at least three directors in order to qualify for 501(c)(3) status.
Follow these guidelines while creating your nonprofit’s inaugural board of directors:
Prefixes such as “Mr.” or “Ms.” should be avoided.
Use lineage titles if relevant.
If appropriate, use titles such as “M.D.” or “Ph.D.”
Step 4: Describe the Goal of Your Nonprofit
Describe the mission of your organisation in article four. For your organisation to be qualified for 501(c)(3) status, it must have one or more of the following characteristics:
Charitable\sReligious\sEducational\sScientific\sLiterary
Public safety testing
promoting amateur sports competition on a national and worldwide scale
Preventing animal/child cruelty
Article four also has three “yes” or “no” questions that must be answered in order to determine if your charity is a condominium association, a cooperative housing company, or a homeowner’s association.
Step 5: Include Any Extra Attachments
To qualify for 501(c)(3) status, you must include certain extra provisions in your Articles of Incorporation regarding the disposition of your nonprofit’s assets upon dissolution.
Here is what you need to know in order to properly share this information:
Describe how your nonprofit corporation’s assets will be dispersed upon dissolution on a piece of paper the same size as your Articles of Incorporation.
To qualify for 501(c)(3) status, your organisation must only disperse its assets to recognised, tax-exempt causes upon dissolution. Refer to the sixth section of the Internal Revenue Service’s (IRS’) proposed wording for corporations and organisations for further information on the requirements of dissolution and 501(c)(3) status.
Step 6: List Your Incorporator Details
Any individual who takes part in the completion and filing of the Articles of Incorporation is considered an incorporator. On this formation paper, incorporators must sign and specify their postal address.
Note: If a corporation serves as an incorporator, the name of the company as well as the state of incorporation must be provided, and the document must be signed by a lawfully authorised corporate official.
Step 7: Documents for Formation
In Illinois, you may submit your Articles of Incorporation online or by mail.