How to start a nonprofit (501(c)(3)): the plain checklist

How do I start a nonprofit?

Here is the whole path in order. You will not do it all in one day, and that is fine.

• Pick a clear mission and a name no one else in your state is using.
• Recruit a board of directors (check your state's minimum size).
• File your Articles of Incorporation with your state, usually the Secretary of State.
• Name a registered agent with a physical address in your state.
• Get a free federal EIN (tax ID) from the IRS.
• Write and adopt bylaws and a conflict-of-interest policy.
• File Form 1023 or Form 1023-EZ with the IRS to request 501(c)(3) status.
• After the IRS approves you, handle state tax exemption and charitable registration.

How much does it cost to start a 501(c)(3)?

The main cost is the IRS application fee. If you file the short Form 1023-EZ, the user fee is $275. If you file the full Form 1023, the user fee is $600. You pay it on Pay.gov when you submit. These fees can change, so check the IRS fee page before you file.

On top of that, your state charges a fee to file your Articles of Incorporation. This amount varies a lot from state to state, so check your Secretary of State's website for the exact number.

Your EIN from the IRS is free. Ignore any site that charges for one, because you never have to pay a fee for an EIN. So a bare-bones DIY start can cost as little as the IRS fee plus your state's filing fee. You may choose to pay a lawyer or accountant, but it is not required.

• Form 1023-EZ user fee: $275
• Form 1023 user fee: $600
• EIN: free, direct from the IRS
• State incorporation fee: varies by state

How long does 501(c)(3) approval take?

It depends on which form you file and how busy the IRS is. IRS processing times shift over time, so treat these as recent snapshots, not promises.

As of June 2026, the IRS says it decides 80% of Form 1023-EZ applications within 22 days and 80% of full Form 1023 applications within 191 days, about six months (IRS, Where's my application).

Forming your corporation with the state is a separate wait, so check your Secretary of State's current processing time. You can check the IRS's current processing dates on its "Where's my application" page before you worry about a delay.

Form 1023 or Form 1023-EZ: which one?

If you are new and small, you may qualify for the shorter, cheaper Form 1023-EZ. But there are hard limits.

You can use Form 1023-EZ only if you project annual gross receipts of $50,000 or less in each of the next three years, your gross receipts did not top $50,000 in any of the past three years, and your total assets are worth $250,000 or less. If you go over any of those lines, you must file the full Form 1023. Size is not the only bar, though: the Eligibility Worksheet asks 31 more yes-or-no questions, and one "yes" rules out the EZ. The ones that catch small groups are LLCs, churches, schools, colleges, hospitals, supporting organizations and successors to a for-profit. Work through the worksheet before you pay, because a rejected EZ costs you the $275 and the time.

• Form 1023-EZ: for smaller groups under the receipts and asset limits.
• Form 1023: for larger groups, groups that expect to grow past the limits, and the types the worksheet rules out.
• Both need an EIN first, and both are paid on Pay.gov.

Some groups can be tax-exempt without applying, such as churches, some very small charities, and local chapters covered by their national group's IRS group exemption. Many apply anyway, because states, grantmakers and donors often ask to see the IRS letter.

Don't skip the state steps

Getting your IRS letter is a big moment, but it is not the finish line. Your state has its own rules, and they differ everywhere.

Before you apply for state tax exemption, check whether your state wants your IRS Determination Letter first. Either way, keep that letter handy, because you will need it.

Your state may also require you to register before you ask the public for donations. This is called charitable solicitation registration. Check your state's rules so your first fundraising campaign stays clean.

• Apply for state tax exemption, once your IRS letter arrives if your state asks for it.
• Register for charitable solicitation if your state requires it.
• Watch for annual state filings so you stay in good standing.

A few honest tips before you file

Do your homework first. The National Council of Nonprofits suggests checking whether another group already does what you plan to do. Sometimes joining or partnering beats starting from scratch.

Keep your paperwork in one place. Your Articles, EIN letter, bylaws, board minutes, and IRS letter will be asked for again and again. Losing them costs you time you do not have. Once your IRS letter arrives, you can apply for Google Workspace for Nonprofits: a free shared Drive to keep them in, plus free email on your own domain. Schools and hospitals are not eligible, but a foundation that raises money for one can still qualify.

And go slow on the language in your Articles of Incorporation. The IRS wants specific purpose and dissolution wording to grant 501(c)(3) status. This is one spot where a quick review by a pro can save you a rejection.