Follow these procedures to establish a charity in South Dakota and get 501(c)(3) status:

Step 1: Give Your South Dakota Nonprofit a Name
Step 2: Select Your Registered Agent

Step 3: Choose Your Board Members & Officers
Step 4 Adopt Bylaws and a Conflict of Interest Policy
Step 5: Submit your Articles of Incorporation.
Step 6: Obtain an EIN
Step 7: Apply for 501(c)(3) status (3)

It is simple to establish a 501(c)(3) non-profit organisation in South Dakota.
To establish a 501(c)(3) tax-exempt nonprofit organisation in South Dakota, you must first establish a nonprofit in the state and then apply to the IRS for 501(c)(3) status.

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Step 1: Give Your South Dakota Nonprofit a Name

The first and most crucial step in establishing your nonprofit company is deciding on a name. Make sure your name meets South Dakota naming regulations and is readily searchable by prospective members and contributors.

1. Follow the naming conventions:

Your company’s name must be distinct from that of existing South Dakota firms.
The name of your organisation cannot indicate that its goal is anything other than what is specified in the articles of incorporation.
For the entire requirements on naming a South Dakota-based organisation, see the South Dakota Legislature’s official guidelines.

2. Does the name exist in South Dakota? Check the Secretary of State’s website for a Business Information Search to ensure that the name you choose isn’t already in use.

3. Is the URL accessible? We propose that you investigate if your company’s name is accessible as a web domain. Even if you don’t intend to create a company website right away, you may wish to purchase the URL to prevent others from doing so.

Step 2: Select a South Dakota Registered Agent.

Your charity is needed to choose a registered agent in South Dakota.

What exactly is a Registered Agent? A registered agent is a person or corporate organisation that accepts vital legal papers on your behalf. Consider your registered agent to be your company’s point of contact with the state.

Who is eligible to be a Registered Agent? A registered agent must be a South Dakota person or a firm, such as a registered agent service, that is permitted to do business in Texas. You may choose someone from your organisation, even yourself.

Step 3: Choose your Directors and Officers

A board of directors is made up of an organization’s directors. This board of directors is in charge of managing the nonprofit’s activities.

Officers are the president, secretary, and other members of a nonprofit who have specific roles and authority.

Your South Dakota nonprofit’s organisational structure MUST include:

At least three independent directors A president A vice president
A secretarial assistant
A treasury official

Step 4 Adopt Bylaws and a Conflict of Interest Policy

Your organisation must have the following two papers in order to apply for 501(c)(3) status:

Conflict of interest policy bylaws
What exactly are bylaws? Bylaws are the guidelines that outline the nonprofit’s operational processes.

What is the definition of a Conflict of Interest Policy? A Conflict of Interest Policy is a set of guidelines put in place to guarantee that any decisions made by the board of directors or officials benefit the organisation rather than individual members.

NOTE: The nonprofit must adopt its bylaws and conflict of interest policy during its first organisational meeting, when the directors and officers are formally selected.

Step 5: Submit the Articles of Incorporation to the State of South Dakota.

You must submit Articles of Incorporation – Domestic Organization Corporation with the State of South Dakota to register your nonprofit.

You must send your Articles of Incorporation since there is no online filing option at this time.

Article I: Entity Identification
Fill in the Name you chose in Step 1.

Article IA: Goal

Describe the mission of your non-profit organisation.

Your organization’s purpose must be restricted to one or more of the following in order to be qualified for 501(c)(3) status:

Charitable\sReligious\sEducational\sScientific\sLiterary
Public safety testing
promoting amateur sports competition on a national and worldwide scale
Preventing animal/child cruelty
Article II: Existence Period
The vast majority of organisations have no set termination date and will therefore be termed eternal. If your organisation should cease to exist on a certain day, just select the second item and enter a date.

Article III: Eligibility
Indicate whether or not your nonprofit company will have members by checking the relevant box.

Article IV: Chief Executive Officer
Include the full address of your nonprofit’s main office.

Article V: Registered Office and Registered Agent
Your nonprofit’s registered agent may be any company registered to conduct business in South Dakota or any South Dakota citizen. Your company cannot serve as its own registered agent.

Anyone you name as the registered agent must have already agreed to serve as the registered agent for your organisation. You are not required to provide documentation of this permission with your articles of incorporation.

Provide information about the registered agency you choose in Step 2.

Incorporator (Article VI) (s)
A person who completes, signs, and submits the articles of incorporation is known as an incorporator. This individual is not need to be a member of your organisation. This might be you or a lawyer assisting you with the formation procedure. Give the name and address of each incorporator.

Article VII: Directors You must identify at least three directors and give a street address for each.

Fill in the details for the directors you choose in Step 3.

Article VIII: Member Classification
Include this information if your organisation will have distinct membership categories.

Article IX: Director Elections
If your nonprofit’s board of directors will not be elected or appointed by its members, explain how they will be chosen.

Article X: Additional Provisions/Information
Use this part of your organization’s articles of incorporation to legally specify what your nonprofit’s assets will be used for and what will happen to the assets if your nonprofit is dissolved.

To be qualified for 501(c)(3) status, you must persuade the IRS that the organization’s assets will be utilised only for the purposes permitted under 501(c)(3) guidelines. To that end, you must incorporate measures that ensure that if your organisation is dissolved, its assets be utilised for tax-exempt purposes.

Section 5 of this sample document illustrates the requirements necessary for 501(c)(3) status.

Execution
When you sign and date the form, you are confirming all that is printed on it. You are also confirming that the registered agent indicated has already agreed to serve as the nonprofit organization’s registered agent.

Send two copies of the Articles of Incorporation (one original and one copy) to:

500 E Capitol Ave, Pierre, SD 57501 Secretary of State Office

Step 6: Obtain an EIN

What exactly is an EIN? The Employer Identification Number (EIN), also known as the Federal Tax Identification Number (FTIN), is used to identify a commercial organisation, such as your nonprofit company. It is basically your company’s social security number.

Why do I need an EIN? An EIN is necessary for the following activities:

To establish a commercial bank account for the firm
In terms of federal and state taxation
To recruit workers for the firm
How can I get an EIN? After founding the firm, the business owner obtains an EIN from the IRS (free of charge). This may be done online or in the mail. For additional information, see our EIN Lookup guide.

Step 7: Apply for 501(c)(3) Status Prior to applying for 501(c)(3) status, a charity must,

Elect at least three independent directors. File the Articles of Incorporation with the necessary conditions (As covered in Step 5)
Adopt the bylaws as well as the conflict of interest policy.
Do you have an EIN?
Once these four qualifications have been completed, your organisation may file Form-1023 online to petition for 501(c)(3) tax-exempt status.

If your application is granted, the IRS will issue you a letter confirming that your organisation is tax-exempt under Section 501(c) (3).

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