Starting a nonprofit in California

1. Form the nonprofit corporation

You file Articles of Incorporation with the California Secretary of State — typically as a nonprofit public benefit corporation for charitable work. The articles must include specific IRS-required language about your exempt purpose and what happens to assets if you dissolve, or the IRS will reject your exemption later.

2. Build your governance

• Adopt bylaws that govern how the organization is run.
• Appoint an initial board of directors (California requires at least one; three or more is standard and recommended).
• Hold an organizational meeting and adopt a conflict-of-interest policy.
• Obtain an EIN from the IRS.

3. Apply for federal 501(c)(3) status

This is the federal tax exemption. You apply to the IRS using Form 1023, or the streamlined Form 1023-EZ if your organization is small enough to qualify. This is the most detailed part of the process — the IRS reviews your purpose, finances, and governance — and it's where professional help saves the most time and rework.

4. Handle California exemption and registration

• File for California tax exemption with the Franchise Tax Board (Form 3500A once you have your IRS determination, or Form 3500).
• Register with the California Attorney General's Registry of Charities and Fundraisers, then file the annual RRF-1.
• Keep up with annual filings to protect your exempt status.

Why sequence matters

Each step depends on the last, and small errors early — like missing IRS language in your articles — cause expensive delays later. We guide mission-driven founders through the full sequence so your exemption isn't held up by a technicality.