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Legal Startup Table
Legal Startup Steps: Federal vs State
Federal Steps State Steps
1. Apply for an EIN (Employer Identification Number)
2. Draft and adopt Bylaws
3. Adopt a Conflict of Interest Policy
4. File IRS Form 1023 or 1023-EZ to apply for 501(c)(3) status
5. Maintain annual IRS filings (Form 990 series) 		1. Reserve your nonprofit name
2. File Articles of Incorporation with your state
3. Register with the State Attorney General or Charities Division (if required)
4. Apply for State Tax Exemptions
5. File Annual State Reports (Secretary of State or applicable department)
IRS Filing Options
Compare IRS 501(c)(3) Filing Options
Feature Form 1023-EZ Form 1023 Form 1024
Recommended For Small nonprofits Large or complex nonprofits Non-501(c)(3) tax-exempt orgs
Gross Receipts Under $50K ✔️ ❌ ❌
Online Filing ✔️ ✔️ ✔️
Includes Narrative & Budget
❌ Only a short description is needed
✔️ ✔️
Includes Churches/Schools ❌ ✔️ ❌
IRS Filing Fee $275 $600 $600
Typical Processing Time 2–4 weeks 3–12 months 6+ months
Restrictions EZ can't be used if your org is a school, hospital, church, or foreign-based
Yes No Yes (based on org type)