How Much Does It Cost to Start a Nonprofit in Texas? Starting a Nonprofit in Texas

To start a nonprofit in Texas, file for a Certificate of Formation (Form 202). This requires a $25 filing fee. To run a nonprofit in Texas, file other paperwork on a federal level. Federal tax-exempt filings cost between $275 and $600 in filing fees.

To establish a nonprofit organization in Texas, select a structure that complies with Texas nonprofit regulations and apply for IRS 501(c)(3) status.

Naming and Structure

Step 1: Name your organization. It should be easily searched by potential members and donors and meet Texas’s naming guidelines.

Step 2: Select a structure. Nonprofits may register as nonprofit corporations or form as Unincorporated Nonprofit Associations and Nonprofit LLCs.

Filing and Fees

The Texas Secretary of State charges a $25 filing fee to file a nonprofit Certificate of Formation, with an additional state-mandated 2.7% convenience fee for online filing. It costs $40 to file a name reservation application to reserve your nonprofit name before filing the Certificate of Formation. The IRS charges a fee of $275-$600 for submitting a 501(c)(3) tax-exemption application.

Between the registered agent and documents, expect to spend about $350 to form your 501(c)(3) in Texas. Before filing form 1023 to apply for 501(c)(3) status in Texas, line up a board of directors, choose an organization name, get an employer identification number (EIN), and file your articles of incorporation.

Steps to Start Your Nonprofit

  • Step 1: Choose an easily searchable name that complies with Texas’s naming guidelines.
  • Step 2: Decide on your nonprofit’s structure.
  • Step 3: File necessary paperwork with the Texas Secretary of State.
  • Step 4: Obtain tax exemption by filing IRS Form 1023.

Ensure there is an unmet need for your nonprofit in the community before starting another organization, as there were over 96,000 nonprofit organizations in Texas in 2012.

Texas nonprofits need a registered agent to accept legal papers if sued. Carefully select one with good service and support.

Starting a nonprofit can be a complex process, but following a step-by-step guide can help you form a nonprofit in Texas properly from the start.

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