Nonprofit status begins at the state level and requires registration as a charitable or nonprofit entity. This process may be online and requires an annual fee with annual renewal. The state will issue a Charter document, used to register with the Internal Revenue Service (IRS), to receive an Employer Identification Number (EIN). Use the EIN to open a bank account for the nonprofit. The bank may provide a discount for a nonprofit organization. The EIN is also used to register with the State Department of Labor for payroll purposes.
Apply for a state sales tax exemption certificate from the State Department of Revenue.
In addition to state registration as a charitable or nonprofit entity, registration may be required for charitable solicitation. Some states require registration for all organizations that solicit money for charitable purposes. Registration is usually annually and requires a fee, submission of a financial report of the entity’s most recent fiscal year as well as information about the entity, its personnel, and its purposes. States with county governments may require registration as a nonprofit with the county.
Some business models may require applying for a state/county business license. This may be covered under the pharmacy license.
|Registration||Level||Fee||Annual Fee||Annual Renewal|
|Register as charitable or nonprofit entity; Receive Charter Document||State||Yes||Yes||Yes|
|Register with IRS using state Charter Document;Receive EIN||Federal||No if done by self||No||No|
|Use EIN to open bank account||Local||Discount for nonprofit status?||Varies by bank||Varies by bank|
|Register with state Dept. of Labor using EIN||State||Varies by state||Varies by state||Varies by state|
|Apply for state sales tax exemption||State||Varies by state||Varies by state||Varies by state|
|Register for charitable solicitation if required; required documents may vary by state||State||Yes||Yes||Yes|
|Register as nonprofit in county if required||County||Yes||Yes||Yes|
|Register for business/pharmacy license||State/ County/ City||Yes||Yes||Yes|