How To Start a Nonprofit in Arkansas in Nine Steps

Your nonprofit’s name should align with your organization’s mission statement so it is clear what your nonprofit does. Your name must be unique and not already registered as another business entity. To see if your name is available in Arkansas, go to the Arkansas Secretary of State’s website to search for a corporation entity.

Then, search on the internet to see if someone else registered the name as a domain name. Finally, use the United States Patent and Trademark Office (USPTO) website to see if the name is registered as a trademark. If the name is not already taken as a business entity or domain name and it isn’t a registered trademark, you can use the name.

A board of directors provides financial and organizational oversight for your nonprofit. They help govern your activities and steer your corporation to fulfill its mission. Often, board members can contribute their expertise in an area or help with fundraising and networking.

Under Arkansas state law, you must have at least three directors on your nonprofit board.

To start a nonprofit, you must complete articles of incorporation for a domestic nonprofit Corp – 501(c)(3) with the Arkansas Secretary of State. The form requires you to include the name of the corporation, if it is a public benefit corporation, if the corporation will have members, how the assets will be dissolved upon dissolution, and the name and address of the corporation’s registered agent and incorporator. You can mail it to Arkansas Secretary of State, Business and Commercial Services, 1401 West Capitol Avenue, Ste. 250, Victory Building, Little Rock, AR 72201, along with a check for the $50 filing fee made payable to Arkansas Secretary of State.

You can also use the Corporations Online Filing System to file the articles online at www.sos.arkansas.gov. The filing fee for an online filing is $45.00.

Your nonprofit must have bylaws and a conflict-of-interest policy. Corporate bylaws are the rules that govern how your organization in makes decisions, elects officers and directors, and schedules meetings. A conflict-of-interest policy is a statement your board members and officers sign, affirming that they will not take actions that could personally benefit themselves at the expense of the organization.

You should have regular meetings with your board of directors at least once a year. At these meetings, you should review your financial statements and discuss ongoing or proposed activities. At your first board meeting, you should adopt your bylaws, elect officers for your organization, and set up other business matters. Keep the minutes of all your board meetings as a corporate record with your legal documents.

You will need an Employer Identification Number (EIN) from the Internal Revenue Service (IRS) for your nonprofit. You use this number to identify your business entity when opening bank accounts or filing tax forms. Go to the IRS website to apply for an EIN.

Once you have an EIN for your nonprofit, you can file for tax-exempt status with the IRS. The form you use depends on the definition of your entity based on the Internal Revenue Code.

• 501(c)(3) charitable, religious, and educational nonprofit organizations file Form 1023 or Form 1023-EZ. If filing the 1023-EZ, you use the Pay.gov site.

• 501(c)(4) social welfare organizations file Form 1024-A.

• Other tax-exempt or nonprofit organizations, such as 501(a), file Form 1024.

The IRS will then send an IRS determination letter to confirm your new nonprofit’s tax-exempt status.

Once you receive your federal tax-exempt status, you can apply for state tax exemptions in Arkansas by filing Form AR1023CT, Application for Income Tax Exempt Status. You can file online using the Arkansas Taxpayer Access Point (ATAP) system.

Before your nonprofit can engage in charitable solicitations, you must register with the Arkansas Secretary of State by filing Form CR-01, Charitable Organization Registration Form, with the requested information. Once registered, you must file an annual report.