Costs and Benefits
The cost to start a nonprofit in the state of South Carolina depends on the size and status of your organization. To begin, you’ll need to incorporate and apply for 501(c)(3) status. As a 501(c)(3) nonprofit, you’ll be able to apply for grants and accept donations, be exempt from federal corporate income tax, and limit the liability of your organization’s officers and directors. Start a South Carolina Nonprofit for just $99 + state fees.
Steps to Start Your Nonprofit
Naming Your Organization
Firstly, you need to choose a name for your organization as it’s critical for branding and necessary for incorporating in SC. Confirm the availability of the name and ensure it meets the requirements set forth by SC.
Forming the Organization
To form a 501c3 tax-exempt nonprofit organization in South Carolina, begin by starting a nonprofit according to the rules of the state. Then apply for 501(c)(3) status with the IRS, commonly formed as religious, literary, charitable, educational, and scientific organizations.
Visit the Secretary of State’s website at www.sos.sc.gov to access the Business Entities Online filing application or download the Articles of Incorporation form to submit by mail. The fee to incorporate as a nonprofit corporation is $25. If using a trade name for the organization, file a DBA (Doing Business As) application with the South Carolina Secretary of State.
Filing and Compliance
Prepare and file your articles of incorporation, outlining your nonprofit’s purpose and structure, and the filing fee is $25. Appoint a registered agent to accept legal documents on the nonprofit’s behalf and obtain an EIN from the IRS for tax purposes.
Board of Directors
You will need to recruit at least three incorporators and directors for your board, and they do not need to be South Carolina residents. Select a board that includes a president, treasurer, and secretary, and consider obtaining liability insurance to protect assets. The board governs finances, operations, and ensures that decisions align with your mission.