How to Start a Nonprofit in Michigan

The Great Lake State is the 11th largest by area and 10th by population. Michigan’s state capital is Lansing but its best known city is Detroit, the traditional home of the US auto industry. The state has many stunning natural features including the great lakes Michigan, Huron, and Superior and the sparsely populated, heavily-forested upper peninsula. Despite being known for heavy industry, Michigan ranks 3rd of all states in terms of Research and Development expenditure.The nonprofit sector also boasts a large investment of resources, featuring over 42,000 nonprofit organizations who employ more than 438,000 people, nearly 11% of the state’s total workforce. The nonprofit sector in Michigan generates more than $81B in annual revenues. (Source: Independent Sector.)Starting a nonprofit in the Michigan is a three step process.

1. Form your board of directors.
2. Perform a name search or reservation.
3. Create your nonprofit corporation.

Step #1: Your Massachusetts Nonprofit Board of Directors

A minimum of three people are required in Michigan to fill the roles of President, Treasurer, and Secretary. You will need a valid physical address for each of your board members.The board of directors officially controls the nonprofit and has overall decision-making power. The board can appoint another person (or multiple people) to run the nonprofit on a day-to-day basis but this is not required to get started.Once you’ve formed your board, you can move on to the next step.

Step #2: Name Search or Reservation

Corporation names, including nonprofits, need to be distinct from one another. Before settling on a name for your nonprofit, you can check name availability by searching on the website. Most states manage corporations through the Secretary of State but in Michigan, you will need to access the Michigan Department of Licensing and Regulatory Affairs.Although it is not strictly required, you can also reserve your name on this site. Reserving your name guarantees that it will be available when you file your nonprofit application.

Step #3: File Your Articles of Incorporation

Setting up your Michigan nonprofit corporation can be done either online or through paper forms. Both forms and the online application are available on the Department of Licensing and Regulatory Affairs website. At the time of writing, the cost to file is $20.You will be notified of the results of your application via mail.

A Faster, Easy Way to Start Your Nonprofit in Michigan

Now you have your Michigan nonprofit corporation, you can use your state information and federal EIN to open a bank account for your nonprofit. However, setting up your nonprofit in Michigan is just part of the process of becoming a formal tax-exempt organization. The next step is to file for a federal tax exemption using either IRS form 1023 or 1023-EZ.The average nonprofit takes 100+ hours of time and often several thousand dollars in professional fees to create. In the past, you were faced with locating, understanding, and filing the forms yourself or hiring an expensive attorney who likely doesn’t specialize in nonprofits.ExemptMeNow is the only secure, fully automated, online platform for creating your Michigan Nonprofit Corporation.