Skip to main content
Form a Nonprofit in California - a Complete Guide
🌇

Form a Nonprofit in California - a Complete Guide

Phone number
none
Category
Nonprofit
Auto tags
nonprofit
California
guide
formation
legal requirements
board of directors
tax-exempt status
resources
support
Nevada County
annual reports
taxes
501(c)(3) organization
cost
domain name registration
Secretary of State
EIN
bank account
Form 1023
Franchise Tax Board
Statement of Information
decision-making
mission statement
nonprofit startup assessment tool
mentor
nonprofit ecosystem blueprint
Eligibility
everyone
Auto Summary
A concise guide to forming a California nonprofit, covering mission development, name selection, filing articles of incorporation, obtaining an EIN, drafting bylaws, setting up a board, applying for federal and state tax‑exempt status, filing required statements, governance steps, annual reporting, tax filing, and resources for mentorship, templates, and support organizations.
Value
$600
Espanol
Espanol: Formar una organización sin fines de lucro en California - una guía completa
URL
https://www.sos.ca.gov/business-programs/business-entities/forms
Last verified 2026-05-17. Fees, forms, and links checked against California Secretary of State, IRS, California Attorney General Registry of Charities and Fundraisers, and Franchise Tax Board.

What this guide is

A step-by-step walkthrough for starting a 501(c)(3) public benefit nonprofit in California. A 501(c)(3) is a charity that is exempt from federal income tax and can receive tax-deductible donations. Most charities focused on education, health, social services, or community work fall into this category.
Expect 3 to 9 months from filing to receiving your IRS determination letter. Plan on $400 to $700 in government fees for a small startup that qualifies for the streamlined Form 1023-EZ. Larger or more complex organizations will pay more.
What this guide isWhat it costs in 2026About the $800 California minimum franchise taxBefore you file: decide if a nonprofit is the right vehicleStep 1: Write your missionStep 2: Pick a nameStep 3: File Articles of IncorporationStep 4: Get an EIN from the IRSStep 5: Draft bylaws and elect a boardStep 6: Open a bank accountStep 7: Apply for federal tax exemption (Form 1023 or 1023-EZ)Step 8: Apply for California state tax exemption (Form 3500A)Step 9: Register with the California Attorney General (Form CT-1)Step 10: File the initial Statement of Information (Form SI-100)Common pitfallsAnnual filings after you are runningWhere to get help in Nevada CountyStatewide helpNational helpQuick checklistSources

What it costs in 2026

These are the unavoidable government fees. Optional costs like legal help, accounting, insurance, and website hosting are on top.
Step
Fee
Notes
Name reservation (optional)
$10
Reserves your name for 60 days. Skip if you are filing Articles right away. [Source: sos.ca.gov/business-programs/business-entities/forms (accessed 2026-05-17)]
Articles of Incorporation (Form ARTS-PB-501(c)(3))
$30
Filed with the CA Secretary of State, online via bizfile or by mail. Paper filings add a $5 special handling fee at the counter. [Source: sos.ca.gov/business-programs/business-entities/forms (accessed 2026-05-17)]
Employer Identification Number (EIN)
Free
Apply directly with the IRS. Never pay a third party for this. [Source: irs.gov/businesses/small-businesses-self-employed/apply-for-an-employer-identification-number-ein-online (accessed 2026-05-17)]
Statement of Information (Form SI-100)
$20
Due within 90 days of incorporating, then every two years. [Source: sos.ca.gov/business-programs/business-entities/statements (accessed 2026-05-17)]
IRS Form 1023-EZ (streamlined)
$275
For small orgs: under $50,000 projected annual gross receipts for 3 years and under $250,000 in assets. Most new community nonprofits qualify. [Source: irs.gov/charities-non-profits/form-1023-and-1023-ez-amount-of-user-fee (accessed 2026-05-17)]
IRS Form 1023 (full)
$600
For orgs that do not qualify for 1023-EZ. [Source: irs.gov/charities-non-profits/form-1023-and-1023-ez-amount-of-user-fee (accessed 2026-05-17)]
CA Franchise Tax Board Form 3500A
Free
Used by orgs that already have an IRS 501(c)(3) determination letter. The older $25 Form 3500 fee does not apply if you file 3500A. [Source: ftb.ca.gov/forms/misc/3500a-instructions.html (accessed 2026-05-17)]
CA Attorney General initial registration (Form CT-1)
$50
Required within 30 days of first receiving any charitable assets. Filed through the AG's online portal. Often missed by new founders. [Source: oag.ca.gov/charities/initial-reg (accessed 2026-05-17)]
Annual Form RRF-1 (AG Registry renewal)
$25 to $1,200
Fee scales with annual revenue. Smallest tier is $25 for under $50,000 in revenue. [Source: oag.ca.gov/charities/renewals (accessed 2026-05-17)]
Domain name (optional)
~$10 to $20 per year
For your website. Use a registrar like Cloudflare, Porkbun, or Namecheap.
A small startup that qualifies for Form 1023-EZ will pay roughly $405 in mandatory state and federal fees the first year: $30 Articles + $20 SI-100 + $275 IRS 1023-EZ + $50 AG CT-1 + $25 AG RRF-1, with Form 3500A and the EIN both free.

About the $800 California minimum franchise tax

For-profit corporations in California owe an $800 minimum franchise tax every year. Nonprofits do not owe this tax once the Franchise Tax Board grants tax-exempt status through Form 3500A. File 3500A as soon as you have your IRS determination letter. Until you get state exemption, you are technically on the hook for the $800, so do not delay this step. [Source: ftb.ca.gov/file/business/types/charities-nonprofits/index.html (accessed 2026-05-17)]

Before you file: decide if a nonprofit is the right vehicle

Starting a nonprofit is a serious long-term commitment. Before paying any fees, ask:
  • Is there already a nonprofit doing what you want to do? Partnering or volunteering may have more impact than starting a new entity.
  • Can you commit to ongoing fundraising, board recruitment, and annual filings for years?
  • Do you have at least three people willing to serve as initial board members?
  • Have you talked to people you intend to serve about what they actually need?
Candid's free Nonprofit Startup Assessment walks you through these questions in detail.
If after that you are still committed, keep going.

Step 1: Write your mission

Your mission statement explains, in one or two sentences, who you help and how. The IRS will look at it on Form 1023 to confirm your purpose is charitable, educational, religious, scientific, or one of the other categories listed in IRC Section 501(c)(3).
Example:
Our mission is to expand internet access and digital skills for low-income residents of rural Nevada County, California, through free training, refurbished devices, and connectivity assistance.
Good missions are specific about who, what, and where. Vague missions like "help people" make the IRS slower to approve you and confuse potential donors.

Step 2: Pick a name

  1. Search the California Secretary of State business search to confirm the name is not already taken. The old businesssearch.sos.ca.gov URL now redirects to bizfile.
  1. The name must end in a corporate designator like "Inc.," "Corporation," or "Corp." for a Nonprofit Public Benefit Corporation, though California does not strictly require this for nonprofits. Check current SOS rules before filing.
  1. Optionally reserve the name for 60 days for $10 by filing a Name Reservation Request through bizfile.
  1. Check that a matching domain name is available. Common registrars: Cloudflare Registrar, Porkbun, Namecheap. Avoid Squarespace Domains and GoDaddy unless you specifically want them; the cheap registrars above usually have better pricing and no aggressive upsells.

Step 3: File Articles of Incorporation

Use Form ARTS-PB-501(c)(3) for a Nonprofit Public Benefit Corporation. This is the right form for most charities planning to apply for 501(c)(3) status. The form includes the IRS-required purpose and dissolution clauses, which is why you should use this version and not the generic nonprofit Articles.
  • File online through bizfile Online for $30. Online filings are processed in 1 to 3 business days.
  • Paper filing also costs $30 plus a $5 special handling fee if dropped off in person. Mail-in processing can take 8 weeks or longer.
You will need:
  • Corporation name
  • Service of process agent (a person or registered agent service with a California street address)
  • Mailing address
  • Initial directors (you can add them later, but listing them now is common)
[Source: bpd.cdn.sos.ca.gov/corp/pdf/articles/arts-pb.pdf (accessed 2026-05-17)]

Step 4: Get an EIN from the IRS

Apply online at irs.gov/EIN. It is free and you get the EIN immediately. You need the EIN for the bank account, Form 1023, and the AG registration.
Be wary of websites that charge $50 to $300 to "help" you get an EIN. They are reselling a free service. Apply directly at irs.gov.

Step 5: Draft bylaws and elect a board

Bylaws are the internal rulebook. They cover:
  • Number of board members (California requires at least one, but the IRS strongly prefers three or more unrelated members for 501(c)(3) approval)
  • Officer roles (President, Secretary, Treasurer or CFO)
  • Meeting frequency and quorum
  • How to amend bylaws
  • Conflict of interest policy (required by the IRS)
You can adapt free templates from Foundation Group, the National Council of Nonprofits, or pay an attorney to customize them.
Hold an organizational meeting where the initial board:
  • Adopts the bylaws
  • Elects officers
  • Approves opening a bank account
  • Adopts a conflict of interest policy
Keep written minutes. The IRS may ask for them.

Step 6: Open a bank account

Bring to the bank:
  • EIN confirmation letter from the IRS
  • Filed Articles of Incorporation (stamped copy from the SOS)
  • Bylaws
  • Board resolution authorizing the account and naming signers
  • Driver's licenses for signers
Most community banks and credit unions offer free or low-fee nonprofit accounts. National banks often charge monthly fees once balances dip below a threshold.

Step 7: Apply for federal tax exemption (Form 1023 or 1023-EZ)

  • Form 1023-EZ ($275): For small orgs expecting under $50,000 in annual gross receipts for the first 3 years and under $250,000 in total assets. Filed online at Pay.gov. About 4 to 6 weeks for a decision.
  • Form 1023 ($600): Full version, required if you do not qualify for 1023-EZ (private foundations, hospitals, schools, churches, large organizations, or anything complex). Filed online at Pay.gov. About 3 to 6 months, sometimes longer if the IRS asks questions.
Take the Form 1023-EZ Eligibility Worksheet first. If you check any box that disqualifies you, file the full Form 1023 instead. Picking the wrong form wastes the user fee, which is non-refundable.
[Source: irs.gov/forms-pubs/about-form-1023-ez (accessed 2026-05-17)]
When the IRS approves you, you receive a determination letter. Keep this forever. Donors, grantmakers, and the FTB will all ask for it.

Step 8: Apply for California state tax exemption (Form 3500A)

Once you have your IRS determination letter, file Form FTB 3500A by mail to:
Exempt Organizations Unit MS F120
Franchise Tax Board
PO Box 1286
Rancho Cordova, CA 95741-1286
There is no fee for Form 3500A. Attach a copy of the IRS determination letter. Without state exemption, you owe the $800 annual minimum franchise tax, so do not skip this step.
If you do not yet have an IRS determination letter, you can use the longer Form 3500 with a $25 fee, but most new nonprofits should wait for IRS approval and use the free 3500A.

Step 9: Register with the California Attorney General (Form CT-1)

This is the step most new founders miss. Every charity in California must register with the Attorney General's Registry of Charities and Fundraisers within 30 days of first receiving charitable assets.
  • Fee: $50
  • Upload Articles, bylaws, and IRS Form 1023 or 1024 (or the determination letter)
  • Form CT-1 auto-populates as you go through the online portal
Skipping this can lead to your charity being suspended from soliciting donations.
[Source: oag.ca.gov/charities/initial-reg (accessed 2026-05-17)]

Step 10: File the initial Statement of Information (Form SI-100)

Within 90 days of incorporating, file Form SI-100 with the CA Secretary of State for $20. It lists your directors, officers, agent for service, and addresses. After the initial filing, this is due every two years.

Common pitfalls

  • Filing the wrong Articles form. Use ARTS-PB-501(c)(3), not the generic nonprofit Articles. Generic Articles do not include the IRS-required language and you will have to amend them later.
  • Forgetting the AG registration. The $50 Form CT-1 is separate from the SOS and the IRS. Many founders do not learn about it until they are warned by the AG's office.
  • Not filing Form 3500A. Without state exemption, you owe $800 per year even if you have no income.
  • Picking 1023-EZ when you do not qualify. The $275 fee is non-refundable. Read the eligibility worksheet carefully.
  • Mission drift in the first year. The IRS expects you to do what you said you would do on Form 1023. Major changes can require an amendment.
  • Putting family members on the board. The IRS scrutinizes boards where most directors are related. Aim for a majority of unrelated, independent directors.
  • Mixing personal and nonprofit finances. Open the bank account before accepting any donations. Never run charity funds through a personal account.

Annual filings after you are running

Once your nonprofit is approved, you have ongoing obligations:
Filing
To whom
When
Fee
Form 990, 990-EZ, or 990-N e-Postcard
IRS
5 months and 15 days after fiscal year end
Free
Form 199 or 199N
CA Franchise Tax Board
5 months and 15 days after fiscal year end
Free
Form RRF-1 + CT-TR-1 (or Form 990)
CA AG Registry of Charities
4 months and 15 days after fiscal year end
$25 to $1,200 based on revenue
Form SI-100
CA Secretary of State
Every two years, by anniversary month
$20
The smallest nonprofits (under $50,000 annual revenue) file the 990-N e-Postcard, 199N, and pay $25 for RRF-1, plus the biennial $20 SI-100. That is the entire annual government compliance cost for many community nonprofits: under $50 a year.
Miss three consecutive 990 filings and the IRS will automatically revoke your tax-exempt status. Getting it back is expensive and slow. Put your filing deadlines on a shared calendar.
The CalNonprofits Compliance Checklist is the best free summary of California annual obligations.

Where to get help in Nevada County

  • Community Foundation of Nevada County — nevcofoundation.org. Local grantmaker and nonprofit support. They can connect you with mentors, fiscal sponsors, and other resources.
  • Sierra Small Business Development Center — sierrasbdc.com. Free webinars on business planning, marketing, and financial management. Many topics apply to nonprofits.
  • SCORE Sacramento — sacramento.score.org. Free mentoring covering Nevada County. Match with retired nonprofit executives.

Statewide help

National help

  • Candid — startup assessments, free funder research at most public libraries.
  • SCORE — free mentoring.

Quick checklist

Confirm there is unmet need a new nonprofit would fill
Recruit at least 3 directors (majority unrelated)
Write a specific mission statement
Check name availability at bizfile.sos.ca.gov
File Articles of Incorporation (ARTS-PB-501(c)(3)) — $30
Get EIN at irs.gov/EIN — Free
Draft bylaws and conflict-of-interest policy
Hold organizational meeting, adopt bylaws, elect officers
File Statement of Information (SI-100) within 90 days — $20
Open a nonprofit bank account
File IRS Form 1023-EZ ($275) or Form 1023 ($600)
After IRS determination letter: file FTB Form 3500A — Free
Register with AG Registry (Form CT-1) within 30 days of receiving any charitable assets — $50
Set calendar reminders for annual 990, 199, RRF-1, and biennial SI-100

Sources