How to Start a Nonprofit in North Carolina
To incorporate a nonprofit in North Carolina, file nonprofit Articles of Incorporation with the North Carolina Secretary of State. This filing officially creates your organization, but it is really just one step toward achieving your nonprofit’s goals. The complete steps to forming a North Carolina nonprofit are as follows:
- Name your nonprofit
- Organize your team and write bylaws
- Get a North Carolina registered agent
- File nonprofit Articles of Incorporation with the NC Secretary of State
- Get a federal EIN tax ID from the IRS
- Hold your first official meeting and adopt bylaws
- Apply for federal and/or state tax exemptions
- Register as a charity with the NC Secretary of State
*The forms or templates provided by Northwest Registered Agent LLC are not a substitute for the advice or services of an attorney.
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12 Day North Carolina Nonprofit For $287 Total
How to File NC Nonprofit Articles of IncorporationTo form a North Carolina nonprofit, file nonprofit Articles of Incorporation in the following steps:
How Much Does It Cost to Incorporate a North Carolina Nonprofit?
North Carolina charges a $60 base filing fee to form a nonprofit corporation, plus a $2 convenience fee if you file online and pay with a credit card. You can also pay an additional $200 for same day processing or $100 for 24 hour processing (otherwise it will take 1-2 weeks for the state to process your filing).
Hire Northwest to incorporate your nonprofit, and the total cost, which includes a full year of our registered agent service, is $287 for 12 day online filing and $387 for 2 day expedited online filing.
How Much Does a North Carolina Nonprofit Cost Each Year?
Unlike most states, North Carolina doesn’t require nonprofits to file annual reports (or pay annual report fees), but if your nonprofit is a registered charity it will pay between $0 and $200 annually to renew its registration with the North Carolina Secretary of State’s Charitable Solicitation Licensing Division. The annual fee depends on the charity’s annual revenue.Get Started
Will My North Carolina Nonprofit Be Tax-Exempt?
Not automatically. To obtain exemptions from federal taxes, you must submit an Application for Recognition of Exemption (Form 1023, 1023-EZ, or 1024) to the IRS, a lengthy form meant to prove that your nonprofit qualifies as an exempt organization. Currently, the IRS recognizes just over two dozen different types of exempt organizations under Section 501(c) of the Internal Revenue Code, but most nonprofits apply for 501(c)(3) tax-exempt status, which applies to public charities and private foundations. If your nonprofit intends to seek 501(c)(3) tax-exempt status, your Articles of Incorporation should include specific language required by the IRS stating that your nonprofit is organized exclusively (and perpetually) for one or more recognized exempt purposes.
Most nonprofits that qualify for federal tax-exempt status are also exempt from the North Carolina corporate income tax and franchise tax, but to apply for these exemptions you’ll need to submit your IRS determination letter, Articles of Incorporation, and bylaws to the North Carolina Department of Revenue. Fortunately, the North Carolina Department of Revenue will actually reach out to your nonprofit shortly after the state files your Articles of Incorporation by sending you a 6-part questionnaire to help determine your nonprofit’s eligibility for North Carolina state tax exemptions.
Is A North Carolina Nonprofit Registered Agent Required?
Yes, you’re required to appoint a North Carolina registered agent for your nonprofit. Your registered agent can be an individual (such as yourself or a willing friend), or you can hire an organization that provides a registered agent service.
Doing the job yourself will save a little money, of course, but it also comes with a lot of headaches. You’ll have to list a physical address to receive legal notices, which becomes part of the public record, and you’ll have to be available at that address during normal business hours. Furthermore, your nonprofit’s Articles of Incorporation will list your address, which then goes into the public record, so you’ll likely have to deal with excessive junk mail and unwanted solicitors showing up at your door.
Northwest’s registered agent service can help. When you hire Northwest, our address can appear in place of yours on your Articles of Incorporation, so we’ll be the ones tied to our desks, not you. You’ll have more privacy, receive less junk mail, and have the freedom to manage and grow your nonprofit on your own terms. If and when we receive official state mail on your behalf, we’ll scan it and send it to you on the day we receive it.Get Started
Do I Have To Register My Nonprofit As A Charity In North Carolina?
If your nonprofit will solicit funds in North Carolina, you will likely need to register as a charity with the Secretary of State’s Charitable Solicitation Licensing Division. You can complete the North Carolina Charity Registration by filing a Solicitation License Application. The fee initial fee and annual renewal fee vary from $0-$200 depending on your nonprofit’s annual contributions (or its projected annual contributions for new nonprofits).
Here is how the potential initial and renewal fees break down:
- Less than $5,000 in annual contributions received: no fee
- $5,000 – $99,999 in annual contributions received: $50 fee
- $100,000 – $199,999 in annual contributions received: $100 fee
- $200,000 or more in annual contributions: $200 fee
To learn more, visit Northwest’s guide to registering a charity in North Carolina.
Do I Need A Federal Tax ID Number (EIN) For My North Carolina Nonprofit?
A federal employer identification number (FEIN or EIN) is a must for any North Carolina nonprofit. You’ll need an EIN to open a bank account in your nonprofit’s name, to apply to the IRS for federal tax-exempt status, and to otherwise effectively navigate your nonprofit’s finances. After the North Carolina Secretary of State approves your nonprofit’s Articles of Incorporation, you can apply for an EIN on the IRS website or by phone. Or if you don’t want to deal with the IRS, you can add our convenient EIN service for an additional fee when you hire Northwest.
Does a North Carolina Nonprofit Need a Business License?
North Carolina doesn’t require a general state business license for nonprofits or any other type of business, but certain business activities (such as selling beer and wine) require permits.
Can I Register An Out Of State Nonprofit In North Carolina?
Yes. To register an out of state nonprofit (also called a “foreign nonprofit”), file a Certificate of Authority with the North Carolina Secretary of State. To learn more, visit our North Carolina foreign nonprofit page.
North Carolina Nonprofit Articles of Incorporation Requirements
Your nonprofit’s name can’t be misleading or deceptively similar to the names of other organizations operating in North Carolina. You can check the Register of Deeds office for similar names, or you can contact the NC Secretary of State to check that your name is available and doesn’t contain any restricted language.
Your Articles should identify whether or not your organization qualifies as either a charitable or religious corporation. North Carolina uses the term “charitable or religious corporation” to refer to nonprofits organized exclusively to pursue one or more exempt purposes described under section 501(c)(3) of the Internal Revenue Code. Basically, then, your Articles need to specify if your nonprofit is the kind of organization that intends to seek 501(c)(3) tax-exempt status with the IRS. If this is true of your nonprofit, you can check the box on the form. If not, you can leave the box blank.
Your registered agent is the individual or business authorized to accept legal notices and other official state mail on behalf of your nonprofit. Hire Northwest, and we’ll serve as your nonprofit’s registered agent.
Your nonprofit’s registered office is the North Carolina street address (no PO boxes!) where your registered agent is available during normal business hours. Hire Northwest, and our North Carolina address goes here.
An incorporator is just a person who signs and submits your nonprofit’s Articles. North Carolina requires at least one incorporator, but this doesn’t need to be one of your nonprofit’s members, directors, or officers. Hire Northwest to form your North Carolina nonprofit, and we’ll be your incorporator.
Your Articles should specify whether or not your nonprofit will have members.
Attach a detailed description of how your nonprofit will distribute its assets if and when it ever shuts down (often called a “dissolution clause”). If your nonprofit intends to apply for 501(c)(3) tax-exempt status with the IRS, be sure your dissolution clause includes the specific language the IRS requires.
You may then attach additional provisions consistent with North Carolina law. These attachments may include, for instance, a purpose clause using the specific language required by the IRS for 501(c)(3) tax-exempt organizations.
Include the street address and mailing address (if different) for your nonprofit’s principal place of business. If you hire Northwest to be your registered agent, you can list our North Carolina street address here.
Listing of Officers (Optional)
You then have the option to include the names, titles, and addresses of your nonprofit’s officers.
Business Email (Optional)
Include a business email if you want to receive a notification from the state each time a state document gets filed on behalf of your nonprofit (the idea behind this option is to help combat identity theft). Your email will not appear publicly on the North Carolina Secretary of State’s website.
Leave this section blank if you want your nonprofit’s effective date to be the same as the date on which the state files your Articles of Incorporation. North Carolina allows nonprofits to delay their effective dates up to 90 days after filing.