Purpose Of Bylaws For Nonprofits In Phoenix
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Unlike other states, Arizona does not provide a blanket exemption from Transaction Privilege Tax (TPT) for nonprofits. Instead, the Arizona Revised Statutes (A.R.S.) outline specific exemptions for nonprofits depending on their role in transactions—as either a business conducting taxable activities or a customer.
Corporate bylaws are legally required in Arizona. AZ Rev Stat § 10-206 states that the “board of directors of a corporation shall adopt initial bylaws for the corporation.” This means that adopting bylaws is a legal requirement.
12 Steps to Starting a Nonprofit in Arizona Name Your Organization. Name Incorporators and Directors. Appoint a Registered Agent. File Arizona Articles of Incorporation. Publish Incorporation. Apply for an Employer Identification Number (EIN) Hold Organization Meeting and Establish Nonprofit Bylaws.
Arizona Business Licenses You may need to obtain local or state business licenses or permits, depending on the type of activities your nonprofit intends to engage in, and where it is located within the state.
For most organizations, the tax year ends December 31 so the Form 990 is due May 15. Exempt organizations no longer need to file either the Arizona Form 99 or copies of their federal Form 990 annually. Arizona does not offer an overall exemption for nonprofits, but they allow exemptions for some single transactions.
The minimum number of board members is set by state statute. Arizona requires one board member. Nonprofits do not need to be incorporated to receive tax exempt status from the IRS, but it is usually recommended.
Transaction Privilege Tax License – A transaction privilege tax (TPT) license (commonly referred to as a sales tax, resale, wholesale, vendor or tax license) is required for businesses selling a product or engaging in a service subject to transaction privilege tax in the state.
Publication requirement. Arizona requires corporations to publish notice of the incorporation within 60 days of incorporation in a publication (i.e. newspaper) in the known place of business for three consecutive publications.
A Certificate of Good Standing is not a requirement for forming LLCs and corporations. Rather, Certificates of Good Standing are typically requested by banks or financial institutions to certify that a company is properly registered with the state.
