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A nonprofit is an entity or association created to promote and maintain the well-being and greater good of a community, in which profits (or surplus) are directed towards the business and mission rather than divided among the owners and shareholders. Nonprofits are often tax exempt. There are several different types of nonprofits, each with its own purpose, structure, regulations and limitations, and tax implications.

Advantages:

• Assets or property belong to the corporation. In the event of lawsuits or creditor claims, only these assets are vulnerable, not the personal property of trustees, officers, or managers. Incorporation creates a distinct legal entity and forms a layer of legal protection between the corporation and its members.
• Some Florida nonprofits qualify for exempt status regarding corporate income, property, and other taxes.

Disadvantages:

• The planning process requires a significant amount of time and effort.
• If control, autonomy, and independence in corporate governance are important to you, nonprofit status might not be appropriate.

Starting your nonprofit in Florida doesn’t have to be a complicated process. Here are a few simple steps:

1. Doing research. Is your nonprofit serving a mission in the community? And do you have the means to maintain it?
2. Making your case. Write your mission statement, think about a name, select your directors carefully.
3. Filing. Rocket Lawyer can help you with this step!

Although they’re used interchangeably, a 501(c)(3) and a nonprofit are not the same thing. 

A nonprofit is an organization that meets the requirements of its state law. While most people think of nonprofits as charitable organizations, states recognize many types of nonprofits, including many that do not perform charitable activities. Insurance companies, industry-specific professional societies, homeowners' associations, and social clubs are just a few examples of nonprofits that are not necessarily 501(c)(3) organizations. 

A 501(c)(3) organization, on the other hand, is an additional application on a federal level. It’s a nonprofit organization that is exempt from most state and federal income tax because it applied for recognition as exempt from tax under section 501(c)(3) of the Internal Revenue Code. A 501(c)(3) organization must operate for exempt purposes. The exempt purpose must be charitable, scientific, educational, religious, literary, public safety, amateur sports competition, or the prevention of cruelty to children or animals.

In addition to 501(c)(3), the IRS recognizes 26 other types of nonprofit organizations. The most familiar type is charitable organizations. Others include:

• 501(c)(4) Civic League, Social Welfare Organization, or Local Employee Association.
• 501(c)(5) Labor, Agricultural and Horticultural.
• 501(c)(6) Trade or Professional Association.
• 501(c)(7) Social or Recreational Club.
• 501(c)(8) Fraternal Societies.
• 501(c)(9) Employee Beneficiary Association.
• 501(c)(12) Local Benevolent Life Insurance Associations, Mutual Irrigation and Telephone Companies, and Like Organizations.
• 501(c)(14) State Chartered Credit Union and Mutual Reserve Fund.
• 501(c)(19) Veterans Organizations.
• 501(c)(29) CO-OP Health Insurance Issuers.

• Choose a name and check its availability.
• Recruit or appoint your directors. You should have at least three that are 18 or older.
• Register.
• File Articles of Incorporation with Florida Secretary of State, Division of Corporations.
• Designate a registered agent.
• File an annual report with the Florida Division of Corporations one year after you form your nonprofit.
• Create bylaws.
• Hold an organizational meeting.
• Create corporate records in a records book.
• Obtain an employer identification number.
• Register with the IRS and the state of Florida when you hire employees.
• Register with Florida's Division of Consumer Services if you're soliciting contributions from the public.
• Register with Florida's Department of Revenue to handle business taxes.
• Apply for tax-exempt status with the IRS and the Florida Department of Revenue.

Fees for registering a nonprofit can differ from county to county and even specific times of the year. Some fees may also be dependent on how much the nonprofit is expected to earn or has earned in previous years. 

There are a few fees that you may be charged when you register a Florida nonprofit. They include the following:

Florida state filing fees and processing times: 

• State fee: $70.
• State processing time: 14-20 business days.
• Rocket Lawyer state filing fee: $0 $99.99.
  • First filing FREE* for Rocket Legal+ members.
  • Get additional filings HALF OFF with Rocket Legal+.

501C IRS filing fees and processing times

• IRS exemption-status fee: $275 for shorter applications or $600 for applications requiring more detailed information (including LLCs, organizations with higher income or value, foreign organizations, churches, schools, some healthcare organizations, and some research organizations).
• IRS processing time: typically 6-12 months.
  • Simple applications may be processed more quickly.
• Rocket Lawyer IRS filing fee: $599 $1,199.
  • Rocket Legal+ members get HALF OFF.

The Business Services team at Rocket Lawyer are pros when it comes to the requirements for registering a nonprofit and the steps and processes required to file in Florida. They can help you gather and file the necessary information quickly and at an affordable price. Rocket Legal+ members get their first business registration filing for free, paying only the state filing fees, and also get access to professional services for up to half off, including registered agent services, tax prep and filing, trademark registration, and more.

If your nonprofit does not have a physical address in Florida (P.O. boxes are not acceptable substitutions), you may be required to have a registered agent. Registered agents accept official and legal correspondence on behalf of your organization. While you are setting up your nonprofit, why not set up Rocket Lawyer as your registered agent at the same time? Better yet, if you have a Rocket Legal+ membership, you can save on your business registration and your registered agent services with the membership that pays for itself.

Businesses can save up to $2,500 per year with a Rocket Legal+™ membership. This calculation is based on total savings on an initial business registration and registered agent, trademark, and business tax filing services for Rocket Legal+ members (a total cost of $924.97) compared to Rocket Legal members (a total cost of $1,949.96). This is in addition to savings on the average cost of 5 hours for document preparation by a non-Rocket Lawyer network attorney at the average attorney hourly rate in the U.S. of $300 (an estimated cost of $1,500 when purchased without any form of Rocket Lawyer membership) compared to unlimited use of customizable business documents for both Rocket Legal+ and Rocket Legal members at no extra cost.

Grants and loans from federal, state, and private sources are a major source of funding for Florida nonprofits. A not-for-profit corporation is responsible for complying with grant requirements and keeping appropriate records. It's important for nonprofits to keep money received from grants separate and apart from the nonprofit's general fund. A good reputation in administering grant monies helps nonprofits obtain more funding from these sources.

A mission statement clarifies your goals and explains how you plan to meet them. As a guideline, describe what, where, when, and how your nonprofit's purpose will be met, as well as who is going to help your nonprofit meet it. It may take a few tries to narrow your ambitions down into a workable plan.

Although you're creating a nonprofit because you want to give back to your community, you still have to meet certain requirements to protect yourself and to ensure that you achieve your organization's goals. When you create a mission statement, you can explain your organization's purpose. Consider what problem or issue your organization wants to address, then focus your statement on including the efforts and values that will guide your nonprofit to these goals.

After forming your Florida not-for-profit organization, you must follow specific guidelines to retain your status:

• Articles of Incorporation must be filed with Florida's Secretary of State Division of Corporations.
• An annual report must be filed within a year of your nonprofit's formation, then again each subsequent year. 

Acquiring and keeping tax-exempt status requires several steps:

• A Florida nonprofit must file Form 1023, the Application for Recognition of Exemption, with the IRS to obtain status as a 501(c)(3) corporation.
• To obtain state income tax exemption, submit a copy of your 501(c)(3) application to Florida's Department of Revenue. You must also submit a copy of the determination letter you'll receive from the IRS.
• File Form 1120, Florida Corporate Income/Franchise and Emergency Excise Tax Return, with the Department of Revenue.
• For sales tax exemption in Florida, file Form DR5, Application for a Consumer's Certificate of Exemption, with the Department of Revenue.

• Florida Association of Nonprofit Organizations.: FANO is Florida's state network of nonprofits. It hosts an annual conference on building capacity. Its site offers start-up kits and a certificate program in nonprofit management.
• Nonprofit Center of Northeast Florida: The Center prides itself on nonprofit leadership, enhancing public understanding, and facilitating collective action from the community. Its website offers networking opportunities, a library, resources, summit, board bank, an events calendar, and a newsletter.

If you are planning to operate in another state, you may need to register a nonprofit in that state. Rocket Lawyer can help you determine which states you should register in.

Other states may have their own rules for foreign nonprofits that originate in Florida or domestic nonprofits that also operate in Florida. Talk to an attorney to understand the legal and tax requirements for the state(s) in which you plan to operate.