All California businesses, including tax-exempt organizations, must apply for a business license to legally operate within the state.
How to Start a Nonprofit in California Name Your Organization. Choose a California nonprofit corporation structure. Recruit Incorporators and Initial Directors. Appoint a Registered Agent. Prepare and File Articles of Incorporation. File Initial Report. Obtain an Employer Identification Number (EIN) ... Store Nonprofit Records.
Although organizations don't need to file these bylaws with the state, California law requires that the treasurer or other designated member of the organization maintains a copy on file.
Under California law, a nonprofit board may be composed of as few as one director, but the IRS may take issue with granting recognition of 501(c)(3) status to a nonprofit with only one director. It is commonly recommended that nonprofits have between three and 25 directors.
Limited partnerships, corporations, and limited liability companies (LLCs) are all legally required to register within California. Only sole proprietorships are exempt.
A California nonprofit corporation must have: 1) either a chairperson of the board or a president or both; 2) a secretary; and 3) a treasurer or a chief financial officer or both.
§ 460/4 | Effective Jan. 1, 2024, a charitable organization with annual contributions more than $500,000 must file an audited financial statement prepared by an independent CPA. A charitable organization with contributions between $300,000 and $500,000 must file a financial statement with the Attorney General.
Many California counties require businesses to obtain a business operating license before doing business in the county. This requirement applies to all businesses, including one-person, home-based operations. Many cities require a business license in addition to the county license.