Virginia Non-Profit Setup Guide

Making corporations and nonprofits are extremely easy in Virginia. Here’s a quick step by step guide. (P.S. I am not a lawyer or CPA)

1. Apply for a corporation’s EIN (Free)

https://sa.www4.irs.gov/applyein/

2. File for a nonstock corporation ($75+$25 yearly)

https://www.scc.virginia.gov/businesses/new-business-resources/

Be mindful, there is an annual renewal fee of $25 for Nonstock Corporations

3.File for Form 1023-EZ for nonprofit exemption under 501(c)(3) ($275)

Form 1023-EZ is filed online: https://www.pay.gov/public/login

Make sure you check the Eligibility Worksheet: https://www.irs.gov/pub/irs-pdf/i1023ez.pdf

In General: To be able to file 1023-EZ the organization has to have less than $50k for any operating year and less than $250k in total assets. Please check the full worksheet. Otherwise you need to file the full form 1023.

4.Get mail approval (4-6 week wait)

Yay! You now have a nonprofit!

5.File yearly tax returns

https://www.irs.gov/charities-non-profits/annual-electronic-filing-requirement-for-small-exempt-organizations-form-990-n-e-postcard

If under $50k in gross income, you only need to send Form 990-N (e-Postcard) which is a confirmation of 8 things:

• Employer identification number (EIN), also known as a Taxpayer Identification Number (TIN)
• Tax year (calendar or fiscal filer)
• Legal name and mailing address
• Any other names the organization uses
• Name and address of a principal officer
• Website address if the organization has one
• Confirmation that the organization’s annual gross receipts are $50,000 or less
• If applicable, a statement that the organization has terminated or is terminating (going out of business)