How to Start a Nonprofit in Louisiana


Steve Goldstein
Steve Goldstein
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Start a Nonprofit in Louisiana

Are you looking to start a nonprofit in Louisiana? You’ve come to the right place. Known for its vibrant community and rich culture, Louisiana (often referred to as The Pelican State) is an ideal location for establishing a nonprofit organization. Unlike for-profit businesses, nonprofits focus on addressing pressing social issues and require a strong foundation, thorough research, and a clear mission targeting a specific community problem.

Embarking on the journey of creating a nonprofit entails various crucial steps, such as obtaining 501(c)(3) status. A 501(c)(3) organization is designed for charitable, religious, educational purposes, and more, qualifying it for federal and state tax exemptions.

In the spirit of Louisiana’s motto, “Union, justice, and confidence,” thousands of nonprofits are founded within the state each year. This article will provide a comprehensive guide to starting your own nonprofit corporation in Louisiana. Keep in mind that the steps discussed here are general guidelines, and modifications may be necessary depending on your specific circumstances. To gain a deep understanding of how to start a nonprofit in Louisiana, we encourage you to read this article in its entirety.

What is a Nonprofit in Louisiana?

Nonprofit organizations are legal entities that operate to serve public benefits and address community issues. Unlike for-profit organizations, nonprofits do not aim to generate any profit. The Internal Revenue Service (IRS) generally exempts nonprofit organizations from tax. However, based on the business entity structure, you will receive tax exemptions as a nonprofit.

In Louisiana, ensure you have a community issue to address before you start forming your nonprofit. It can generally be education, religion, charity, social service, or other social issues. Nonprofits do not pay taxes on the money they receive through fundraising programs, donations, or any charitable funding.

Types of Nonprofits in Louisiana

The first thing one has to decide is what type of nonprofit structure one wants. There are several types of nonprofits one can start. Here is a list of nonprofit types one can choose from-

  1. Nonprofit LLC
  2. Nonprofit Corporation
  3. Unincorporated Nonprofit

Forming an LLC in Louisiana for your nonprofit can be a smooth option. However, having a corporation is less complex than having a nonprofit LLC. Hence, it is wise to start a nonprofit corporation instead of an unincorporated nonprofit or nonprofit LLC.

– LLCBuddy Editorial Team.

Technically, starting a corporation for your nonprofit protects your personal assets but also is eligible for Federal and State tax exemptions. When you form an LLC for your nonprofit, it only protects your personal assets but does not give you any tax exemptions. On the other hand, a nonprofit Corporation has both corporation and limited liability company benefits. You can also have an unincorporated structure where you don’t have to register it. Unincorporated nonprofits in Louisiana might be eligible for tax exemptions (check with Louisiana Department of Revenue), but this type of organization does not get to enjoy limited liability and personal asset protection.

How to Start a Nonprofit Corporation in Louisiana

Setting up a nonprofit corporation requires a few things to consider. Name of the nonprofit, initial directors, drafting bylaws, get a Resident Agent, obtain tax IDs, insurance, and a bank account – these are important steps you must follow. The steps mentioned here are general business formation steps. State-wise, some steps can be different. Getting an expert consultation before you start your nonprofit corporation formation is recommended. Here are the steps explained below-

Step 1: Get a Suitable Name for Your Louisiana Nonprofit Corp

The first step is to name your nonprofit corporation. You must be sure that the name is available and that no other organization is using this name. You can check the Louisiana LLC name search to find the best suitable name for your organization. You must follow those rules to avoid any legal issues later. You can reserve the name for 60 days for any domestic entity (such as a nonprofit LLC) if you’re not forming the nonprofit immediately.

Step 2: Appoint the Initial Board of Directors

The next step is to get your nonprofit’s initial board of directors. It is very important when you are setting up a nonprofit corporation. You need at least Three unrelated directors to start the organization. If you don’t choose a minimum of Three directors, it will automatically become a member-managed corporation.

Step 3: Appoint Your Louisiana Resident Agent

The third step is to get a Louisiana Resident Agent for your nonprofit corporation. The Resident Agent is a person who receives all the legal documents on your behalf. It is necessary to get a registered agent. He/she must be above 18 years old and have a physical address in Louisiana.

Step 4: Write Louisiana Nonprofit Bylaws

The next important step is to write the company bylaws. The directors and board members must decide how the meetings, elections, voting, and other corporate activities will be held. These bylaws must comply with the Louisiana state law. It is similar to an LLC operating agreement in Louisiana for the LLC owners.

Step 5: File the Louisiana Articles of Incorporation

This is the most important step. File your Articles of Incorporation with the Louisiana Secretary of State. You can do it through four ways, online, by mail, fax, and in person. All the formation forms, such as the Louisiana LLC Articles of Organization form, the Louisiana Articles of Incorporation form for corporations, forms for LLPs, and all others can be found on the Louisiana SOS official website. Submit the details of your nonprofit corporation, like the name of the nonprofit, address, name and address of the registered agent, operation dates, directors’ details, and more information related to your company. You can send the form (for offline filing) and the filing fee of $75 for filing online, fax, in person and by mail to the State of Louisiana Secretary of State, P.O. Box 94125, Baton Rouge, LA 70804 or upload it online (if available).

Step 6: Obtain Tax ID for Your Louisiana Nonprofit Corporation

The subsequent step involves obtaining a Tax ID for your nonprofit corporation. You will need to acquire an Employer Identification Number (EIN) from the official IRS website. To obtain the EIN, submit your application to the IRS office either by mail or through their online platform. There is no associated cost for this process.

Step 7: Get Business Licenses in Louisiana

The next step is to get the business licenses you need to run your nonprofit organization in Louisiana. Check with the local government office if any special licenses you need to run your nonprofit. You can file your nonprofit as a charity if you want.

Step 8: Federal Tax Exemption

You must submit Form 1023 to the IRS to file for federal tax exemption. This form, titled “Application for Recognition of Exemption Under Section 501(c)(3) of the Internal Revenue Code,” is required for all nonprofit corporations. Smaller nonprofits have the option to file Form 1023-EZ instead. You will be prompted to provide details about your organization upon obtaining the relevant form. Complete the form with the necessary information and submit it. The filing fees are $600 for Form 1023 and $275 for Form 1023-EZ.

Step 9: State Tax Exemption

Once you get the Federal Tax Exempt, it is time for State Tax Exempt. In Louisiana, you must apply for the tax exemption to Louisiana Department of Revenue. Get the form, fill it up with the correct details, and send it to the office. You may need to pay a fee along with the form and supportive documents to apply for the State Tax Exemption. You need R-1048 Form to apply for the state tax exemption. Read Louisiana classification of taxes to learn more about the Louisiana tax structure.

Step 10: Get Insurance for Your Louisiana Nonprofit

Once you start your nonprofit, you must get insurance to protect your organization. You must get workers’ compensation and unemployment insurance if you have employees. Based on your nonprofit structure, you might need general liability insurance, property, vehicle, auto insurance, etc. You can contact the insurance providers to learn more about which are required for your organization. Also, you can contact Louisiana Department of Insurance for more information.

After Forming Your Louisiana Nonprofit Corporation

Once your nonprofit is formed, there are additional steps to complete:

  • Get a Business Bank Account: You must get a business account for all types of business-related transactions in Louisiana. You may need different documents based on the bank and place of business. Check with the bank for it.
  • File Nonprofit as Charity: This is optional. Your nonprofit is either for charity purposes or any purpose that meets your community’s needs. If your organization is for charity purposes, then you can file your nonprofit as a charity to enjoy tax exemptions.
  • Other Business Compliances: You may need additional compliances based on your nonprofit type. Check with your attorney or local authority for more information.

Names of Nonprofit Corporations in Louisiana

Following are some of the Nonprofit Organizations in Louisiana. The contact information of these organizations can be found on Louisiana SOS official websites.

  • Cajun Navy Relief
  • Heart N Hands
  • Animal Rescue New Orleans Inc.
  • Humane Society Of Louisiana Inc
  • Jai Bhakti Yoga Foundation
  • Healthy Gulf dba Gulf Restoration Network.
  • Take Paws Rescue
  • Audubon Nature Institute Inc.

FAQs

What is a nonprofit in Louisiana?
A nonprofit in Louisiana is an organization that is organized and operated for a charitable, educational, religious, scientific, or other public purpose.
What is the process for starting a nonprofit in Louisiana?
The process for starting a nonprofit in Louisiana involves filing Articles of Incorporation with the Louisiana Secretary of State, obtaining a Federal Employer Identification Number (FEIN) from the IRS, writing a business plan, applying for tax-exempt status, and applying for any required licenses and permits.
Do I need to register my nonprofit in Louisiana?
Yes, you do need to register your nonprofit in Louisiana with the Louisiana Secretary of State.
Do I need a tax ID number to start a nonprofit in Louisiana?
Yes, you will need to obtain a Federal Employer Identification Number (FEIN) from the IRS in order to start a nonprofit in Louisiana.
What paperwork do I need to file to start a nonprofit in Louisiana?
The paperwork you need to file to start a nonprofit in Louisiana includes Articles of Incorporation, a business plan, tax-exempt status applications, and any necessary licenses and permits.
How do I apply for tax exemption in Louisiana?
You can apply for tax exemption in Louisiana by filing Form R-10 with the Louisiana Department of Revenue.
How much does it cost to start a nonprofit in Louisiana?
The cost of starting a nonprofit in Louisiana varies depending on the services you need, but you can expect to pay for filing fees, licensing fees, and other costs associated with setting up a nonprofit in the state.
Is there a minimum amount of money I need to start a nonprofit in Louisiana?
No, there is no minimum amount of money required to start a nonprofit in Louisiana.
What are the legal requirements for forming a nonprofit in Louisiana?
The legal requirements for forming a nonprofit in Louisiana include filing Articles of Incorporation with the Louisiana Secretary of State, obtaining a Federal Employer Identification Number (FEIN) from the IRS, writing a business plan, obtaining tax-exempt status, and applying for any necessary licenses and permits.
How long does it take to form a nonprofit in Louisiana?
The amount of time it takes to form a nonprofit in Louisiana depends on the complexity of your organization and the speed with which you complete the necessary paperwork, but it typically takes several weeks or months to complete the process.
Do I need an attorney to start a nonprofit in Louisiana?
Hiring an attorney to help you with the process of starting a nonprofit in Louisiana is not required, but it can be beneficial to have an experienced professional to guide you through the process.
What are the reporting requirements for a nonprofit in Louisiana?
Louisiana nonprofits are required to file an annual report with the Louisiana Secretary of State, as well as complete and file any necessary federal, state, and local tax documents.
Does a nonprofit in Louisiana need to have a board of directors?
Yes, a nonprofit in Louisiana must have a board of directors.
What are the state laws for a nonprofit in Louisiana?
The state laws for a nonprofit in Louisiana are outlined in the Louisiana Nonprofit Corporation Law and include requirements for registration, filing annual reports, and obtaining tax-exempt status.
Are there any special tax laws for nonprofits in Louisiana?
Yes, there are special tax laws for nonprofits in Louisiana that outline the process for applying for tax-exempt status and exemptions from certain taxes.
What is the penalty for not filing taxes for a nonprofit in Louisiana?
The penalty for not filing taxes for a nonprofit in Louisiana can include fines and penalties from the state, as well as potential criminal charges.
What resources are available to help me start a nonprofit in Louisiana?
There are numerous resources available to help you start a nonprofit in Louisiana, including the Louisiana Secretary of State’s website, the IRS website, and online courses and books about starting nonprofits.
Are there any grants available for nonprofits in Louisiana?
Yes, there are grants available for nonprofits in Louisiana from both private and public sources, such as foundations and government agencies.
Do I need a lawyer to register my nonprofit in Louisiana?
No, you do not need a lawyer to register your nonprofit in Louisiana, but it is recommended to consult with a lawyer to ensure that the process is done correctly.
What is the deadline for filing taxes for a nonprofit in Louisiana?
The deadline for filing taxes for a nonprofit in Louisiana is the 15th day of the 5th month after the end of the fiscal year.
How do I apply for 501(c)(3) status in Louisiana?
You can apply for 501(c)(3) status in Louisiana by filing Form 1023 with the IRS.
How do I apply for a license for a nonprofit in Louisiana?
Depending on the type of license you need, you can apply for a license for a nonprofit in Louisiana by contacting the relevant state agency or by filing an application with the Louisiana Secretary of State.
Can I start a nonprofit in Louisiana without a board of directors?
No, you cannot start a nonprofit in Louisiana without a board of directors.
Do I need to hold regular board meetings for my nonprofit in Louisiana?
Yes, you need to hold regular board meetings for your nonprofit in Louisiana.
What are the record keeping requirements for a nonprofit in Louisiana?
The record keeping requirements for a nonprofit in Louisiana include maintaining financial records, meeting minutes, and other relevant documents.
What is the Louisiana Solicitation of Charitable Funds Act?
The Louisiana Solicitation of Charitable Funds Act is a law that requires nonprofits in Louisiana to register with the state before conducting any fundraising activities.
Are there any reporting requirements for fundraising activities for nonprofits in Louisiana?
Yes, nonprofits in Louisiana are required to report any fundraising activities to the Louisiana Attorney General’s office.
What is the Louisiana Nonprofit Corporation Law?
The Louisiana Nonprofit Corporation Law is a law that outlines the legal requirements for forming and operating a nonprofit in Louisiana.
Do I need to register my nonprofit with the Louisiana Attorney General?
Yes, you do need to register your nonprofit with the Louisiana Attorney General before conducting any fundraising activities.
Does a nonprofit in Louisiana need to have bylaws?
Yes, a nonprofit in Louisiana needs to have bylaws that outline the organization’s rules and procedures.

Also Read

Why Louisiana Nonprofit Corporation is So Important

One key reason why Louisiana nonprofit corporations are so important is that they serve as a lifeline for those in need. These organizations often provide essential services such as food assistance, shelter, healthcare, education, and support for those facing poverty, homelessness, and other challenges. Without the tireless efforts of nonprofits, many of our fellow Louisianans would be left without access to the basic necessities that we often take for granted.

Moreover, nonprofit corporations in Louisiana are instrumental in fostering a sense of community and solidarity. By bringing people together to work towards a common cause, these organizations help build social cohesion and create networks of support that can have a lasting impact on individuals and communities. Volunteers and donors alike come together under the umbrella of nonprofits, forming a bond that transcends social and economic boundaries.

Another critical aspect of nonprofit corporations in Louisiana is their advocacy work. These organizations often serve as powerful voices for the voiceless, championing important causes and influencing policy decisions at the local, state, and national levels. Through their advocacy efforts, nonprofits can bring about real change by raising awareness, mobilizing resources, and holding decision-makers accountable.

Furthermore, Louisiana nonprofit corporations play a vital role in promoting innovation and creativity in addressing social challenges. These organizations are often at the forefront of developing new approaches and solutions to complex problems, sparking change and inspiring others to follow suit. By fostering a culture of innovation and experimentation, nonprofits can help drive progress and push our society forward.

Beyond these tangible contributions, nonprofit corporations in Louisiana also have a profound impact on our collective well-being. By promoting empathy, compassion, and altruism, these organizations help cultivate a culture of giving and goodwill that benefits us all. Whether through volunteering, donating, or simply spreading awareness, individuals can make a difference in the lives of others thanks to the work of nonprofits.

In conclusion, Louisiana nonprofit corporations are a vital lifeline for those in need, a catalyst for community-building and solidarity, a powerful advocate for social change, a source of innovation and creativity, and a force for promoting empathy and compassion. Without these organizations, our society would be much poorer in spirit and in substance. It is crucial that we continue to support and empower nonprofit corporations in Louisiana so that they can continue their invaluable work for the betterment of our state and our fellow citizens.

Conclusion

Starting a nonprofit corporation in Louisiana is an incredible way to give back to your community and positively impact the causes that matter most to you. By forming a nonprofit, you can provide essential services, promote awareness, and make a lasting difference in the lives of those who need it most. In Louisiana, a lot of nonprofit organizations are there to cater to people in need. Starting a nonprofit corporation is better than an LLC, as it provides limited liability and tax benefits. It helps you save taxes. If you want to start a nonprofit in Louisiana, you must follow the steps mentioned above in the article.

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