How to Start a Nonprofit in South Carolina

South Carolina is home to more than 10,000 nonprofit organizations. While the process to start a nonprofit is generally uniform, each state differs a little. In South Carolina, the main difference to know is that under the South Carolina Solicitation of Charitable Funds Act, the Secretary of State is able to regulate charitable organizations and the organization’s plans to solicit contributions must register with the Secretary of State each year. Also, South Carolina nonprofit organizations must register for tax-exempt status with both the IRS and the state.There are two main steps to starting any nonprofit: 1) get incorporated and 2) receive 501(c)(3) status. Getting incorporated means that your organization is recognized at a state level. This can be broken down into 5 simple steps:

1. Select Board of Directors (at least 3 members)

   1. They do not necessarily have to be residents either. Just whoever you think can take on the responsibility of the job.

2. Choose a name.

   1. Just like any business, you want your name to be memorable. In South Carolina, the name must be unique from any other registered corporation To check your nonprofit’s name availability, search through the registered charities in South Carolina.

3. Create bylaws for your nonprofit.

   1. How will your organization run? How will you hold meetings? Will officers be elected? These are all questions to consider when writing your bylaws. While these are not filed with the state, they are used for internal organization.

4. File Articles of Incorporation.

   1. The Articles of Incorporation form can be filed on the Secretary of State Website for an online or in-mail filing fee of $50.
   2. You will be asked to provide the following:
      1. Organization name (see step 2)
      2. Federal Employer Identification Number (FEIN), which can be obtained from the IRS website
      3. Your mission statement
      4. The name and address for each incorporator.
      5. Whether or not your organization will have members
      6. Distribution of assets
      7. Office address

5. Get started!

   1. Now that you are officially recognized as a nonprofit, it is time to hold your first board meeting. Here you will discuss your bylaws and follow through with electing officers, discuss finances, etc.

6. State Tax Exemption

   1. While every organization must apply for federal tax exemption, South Carolina also requires that each organization for South Carolina Tax-exemption.

A Faster, Easy Way to Start Your Nonprofit in South Carolina

Now you have your South Carolina 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 South Carolina 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 1023EZ.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 South Carolina Nonprofit Corporation.Sign up for your free account today.