How Do I Form a 501c3 in Michigan? Starting a 501(c)(3) Nonprofit in Michigan

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Formation Steps

To form a 501c3 tax-exempt nonprofit organization in Michigan, you must first register a nonprofit corporation with the state, and then apply for 501c3 status with the IRS. Here are the steps you need to take:

  1. Form your Michigan Non-Profit Corporation

    • File Articles of Incorporation with the State of Michigan Department of Licensing.

  2. Apply for 501(c)(3) Tax-Exempt Status

    • File Form 1023 with the Internal Revenue Service (IRS).
    • Agency: IRS
    • Filing Method: Mail
    • Turnaround: 1023-EZ average: <1 month, 1023 average: 3-6 months.

Costs and Timelines

The initial 501(c)(3) formation packages start at $1,799 plus filing fees. This includes preparing and filing the necessary registrations to become a nonprofit, saving you time.

  • 501(c)(3) Formation Package: Starts at $1,799 + filing fees
  • Turnaround Time:
    • For Form 1023-EZ: Less than 1 month
    • For Form 1023: 3-6 months (up to a year depending on complexity)

Important Considerations

  • It’s essential to name your nonprofit appropriately, ensuring it fits Michigan’s naming guidelines.
  • An experienced specialist from Harbor Compliance can assist with each step of nonprofit formation, customizing all applications.
  • Every line in your IRS application, including correct filing of Forms 1023 and 1099, can significantly impact your chances of obtaining 501(c)(3) approval.
  • On average, acquiring 501(c)(3) status in Michigan takes approximately 6-9 months, including the IRS processing time for your application.

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