Steps for Forming & Maintaining a New York Not-for-Profit Corporation

A. Formation & Exemption Applications

• Check if the name has been used in NYS on the Department of State’s web-site www.dos.state.ny.us.
• Pick at least 3 individuals for the board of directors
• Develop a mission statement and basic program ideas
• Incorporate by filing a certificate of incorporation with the Department of State, Corporations Unit
• Develop and adopt By-laws and determine Officers
• Adopt a Conflict of Interest policy and Whistle Blower policy
• Apply to the IRS for employer (or federal) identification number (downlaodable form) www.irs.gov
• File for federal public charity tax exempt status under Sec. 501(c)(3) of the IRC - Applying on Form 1023 (downloadable form) www.irs.gov)
• File for New York State Attorney General Charities Registration at: www.oag.state.ny.us
• Apply for New York State sales tax exemption (Forms & Publications - ST-119.2) www.tax.state.ny.us
• If organization owns property in NYC:
  File for Real Property Tax Exemption with NYC Department of Finance
  Apply for water and sewer exemption from NYC Department of Environmental Protection
• Do annual filings to federal (Form 990), state CHAR 500), city property filings and appropriate county filings

B. Financial

• Establish bank account and check signing procedure
• Retain an accountant and when required an auditor for annual federal and state filings
• Establish a financial management, auditing and internal controls systems
• Set up a general ledger and bookkeeping to account for cash receipts and disbursements, assets and liabilities
• Establish a system for receipting gifts over $250 to comply with IRS law

C. Employment

• Compose job descriptions, hire staff and set compensation and eventually write a personnel manual
• Establish a payroll system including withholding requirements as well as maintaining records for each employee such as name, social security numbers, W-2 Forms and all payments made including bonuses and vacations
• Establish a system for determining who is an employee or independent contractor and a system for preparing and filing Form 1099 for such independent contractors
• Procure health benefits for employees and retirement plan.

D. Insurance & Space

• Procure the mandatory Workers’ Compensation, Unemployment and Short-term Disability insurance as well as necessary insurance: general liability, property, professional, sexual abuse, Officers & Directors Liability
• Rent or purchase space
• Lease or purchase equipment and maintenance contracts