Filing articles of incorporation is done at the state level according to state laws. It is now possible (as of 2005) to incorporate as a Limited Liability Corporation (LLC) and still be eligible for 501(c)(3) status (IRS-557, 2005). Each state has different laws on what constitutes an LLC, so new NPO founders should investigate this possibility. If the separate members of the board live in several states, it may be a good idea to do research to find out which state has the regulations best suited to the organization’s needs. If an NPO’s constituency is within a given state, however, the organization must apply there. Larger and international NPOs may need to file a request for a Certificate of Authority to operate in a state other than the one in which it was founded. This certification is necessary if an NPO raises a great deal of funds in a separate state, or hires members of that state as employees. If the nonprofit organization is making a significant impact in a particular state, it should file a request for this certificate.
The criteria for filing in each state is different, but will undoubtedly include downloading or picking up a copy of an official form as well as attaching supporting documentation. Some states have separate applications for nonprofits, foundations, and charities, and because the process of filling out the necessary documents can be quite arduous, it is important to ensure that the correct forms are received.
