How to Start a Nonprofit in Wisconsin
Situated in America’s Heartland, Wisconsin is best known for its cheese production (the state produces more than 2.5 billion pounds per year!), stretches of farmland and forests, and Great Lake coastlines. The Badger State’s largest city, Milwaukee, has been home to a booming beer industry since the 19th century.Equally important to cheese and beer for the Wisconsin economy is its nonprofit sector. Consisting of over 30,000 organizations, employing 12% of the state’s workforce, and generating $49 B in annual revenues (Independent Sector), America’s Dairyland relies on its nonprofits to deliver key community services where its agricultural sector cannot.If you’re a cheesehead with a head full of ideas for your own nonprofit, the first step to creating one in your state is to incorporate the organization as a domestic non-stock corporation with the State of Wisconsin’s Department of Financial Institutions. The filing process can be completed either online or by sending an application through the mail. The cost of starting a nonprofit in Wisconsin is $35.00.Here is a snapshot of all of the information you should have in order before incorporating your nonprofit in Wisconsin:
- Name of your nonprofit. The name of your proposed nonprofit cannot currently be in use by another Wisconsin-based business entity. In order to ensure that your proposed name is available, you can perform a name search by searching corporate records on the Department of Financial Institutions’ website. The state requires that names of nonprofits contain the word “corporation,” “incorporated,” “company,” “limited,” or abbreviations of those words (i.e. “inc.”).
- The mailing address of initial principal office. This could be your home address in lieu of having an actual office at the time of filing.
- Name and address of the registered agent. A registered agent to a nonprofit is an individual who serves as the liaison for communication between the organization and its state/ federal entities. This person will receive notice of important business filings and any legal matters pertaining to the organization. The registered agent must be a resident of the state. He or she can be a member of your board or staff, but doesn’t have to be; any Wisconsin resident can serve as the registered agent of a nonprofit. This person should be carefully selected, as the role of the registered agent is crucial for staying compliant with state and federal regulations.
- Distribution of funds. Indicate if and how the nonprofit will distribute its funds. You can learn more about distributions by clicking here.
- Name and address of each incorporator. Incorporators are the people who prepare the articles of incorporation for the nonprofit. These are typically initial board and/ or staff members of a nonprofit.
Once you have all of the information above prepared, you’re ready to file your Articles of Incorporation. This is the first of a three-step process towards creating a fully-fledged 501(c)(3) tax-exempt nonprofit. The other two steps after incorporation are:
A Faster, Easy Way to Start Your Nonprofit in Wisconsin
Now you have your Wisconsin 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 Wisconsin 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 Wisconsin Nonprofit Corporation.
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