The first step for starting any type of independent legal entity is to incorporate using the appropriate structure. My personal expertise is in nonprofit corporations, but there are other structures if you intend to generate profit. A limited liability company (LLC) is also an option, particularly for new small businesses or solo entrepreneurs.

Incorporation happens at the state level and requirements vary across states, but for nonprofits, the requirements generally include:

• A name for the organization that isn’t already being used by another entity

• Statutory agent — this can be an individual person, they have to live in the state and receive paperwork in the mail. They usually have to fill out an acceptance form or other paperwork. Their name becomes public record as affiliated with the org.

• Articles of Incorporation — these explain who is incorporating the org, its purpose, and when it's happening.

• Bylaws — these often need to be filed with a separate agency than the one you incorporate with but are still required. These are the rules of how the organization operates.

• Filing fee – there are various summary charts online that show all of the state fees, here is one of those

There are then one or two things to obtain from the Internal Revenue Service (IRS). These are federal designations, distinct from the state-level incorporation you have to start with.

1. Employer Identification Number (EIN) – any entity who has employees or intends to hire employees in the future needs one of these. It’s also needed for tax filing purposes. Some single-member LLCs may not need one but that’s about it.

2. 501c tax exemption – nonprofit corporations need to obtain a 501c designation to collect tax-deductible contributions. 501c3 is common, but there are advantages to 501c4 designation (these entities can do more electoral work). Churches and other specialized entities have different designations.

There are then additional steps needed at the state level to start paying employee(s). These need to happen in every state your employee(s) live in, not just where your entity is incorporated.

• If you have employees in a state other than where you are incorporated, you generally need to register as a “foreign corporation” in that state to let them know you exist. There are sometimes additional requirements around reporting new hires to the state.

• Then you need to set up withholding tax account(s) with the state(s) where you have employees, usually with the Department of Revenue or similar.

• Many states require employers to pay into unemployment insurance (UI). Some do not, or only require it with a certain number of employees. This is usually a different account to set up, depending on how the state handles it.

• There are a few states (Ohio, North Dakota, Washington, and Wyoming) that administer their own workers’ compensation programs and don’t allow for employers to use private insurers. Employers in those states need to set up accounts with the appropriate department.

What can I offer and how much does it cost?

• We’ll start with a 30 minute, free, no obligation consultation call for me to get a high level sense of what you want to do on what time frame. You can assess me and my approach and decide if you want to proceed from there.

• If we move forward, I will send you a draft contract. I charge $250 per account setup.

• Brand new organizations operating in a single state can anticipate spending in the ballpark of $1250 for initial setup, including Articles of Incorporation. If you need me to project manage creation of organizational bylaws, that will be scoped and charged separately as it is a more significant time investment.

• If you are already incorporated and just need to open new states for hiring, you can anticipate spending $500 per state as most require at least two accounts with different departments.

• Obtaining 501c3 designation for nonprofits will also be scoped and charged separately as the application is extensive and contains multiple elements.

• All fees charged by the states are in addition to my cost. I can give you an estimate of what to budget for these and we’ll discuss the best payment mechanisms for your organization to utilize.

• State charitable registration can be added for nonprofit organizations that fundraise in states where this is required.

• Depending on your preference, we will either do an approximately one hour intake call where I ask questions about your organization and you provide information in real time, or I can send a list of needed information for your email response. Some filings may require both verbal and written communication to complete.

• Most filings require an annual update. Your organization can handle that internally or hand them to me at a cost of $250 per filing, plus renewal fees from the state. Please note I am not an accountant or an auditor and cannot file Form 990 or provide audited financials for your organization.

Why should I hire you instead of just using one of the many online services that google gives me?

• I can tailor the plan to your exact needs as an organization.

• You can access me directly in whatever format you prefer, and you’ll never have to start from scratch to explain an issue or ask a quick question.

• I have extensive professional experience interacting with state agencies and the IRS from within the nonprofit sector. I know how to navigate bureaucracy on your behalf.

• I’m not a lawyer and can’t provide legal advice, and the amount I charge reflects that. I will refer you to a lawyer only when it’s necessary.