How to Start a Non-Profit Organization in Michigan
If you’re looking to start a Michigan nonprofit organization, you’re in the right place. This
guide will help you file formation documents, obtain tax identification numbers, and
register for fundraising.
Paperwork:
 Form CSCL/CD-502: Articles of Incorporation for use by Domestic Nonprofit
Corporations or Form CSCL/CD-503: Articles of Incorporation for use by
Ecclesiastical Corporations
 Bylaws
 IRS Form SS-4: Apply for EIN
 IRS Form 1023: Application for 501(c)(3) Exemption
 IRS Determination Letter
 Form 518: Registration for Business Taxes
 Form 3372: Michigan Sales and Use Tax Certificate of Exemption
 URS Charitable Registration, if applicable
 Michigan Initial Solicitation Registration Form
Cost:


Incorporation: $20 + optional $50-1,000 expedite service
501(c): $400 or $850 IRS fee
Time:


Incorporation: ~5-7 business days with returned documents in ~4 weeks. ~24
hours for $50. Same day for $100. 2 hours for $500. 1 hour for $1,000.
501(c): ~3-6 months
1. Before You Begin...
Before you begin, take a moment to consider if you should start a new non-profit
organization. According to the National Center for Charitable Statistics, there were over
50,000 nonprofit organizations in Michigan in 2009. Before deciding a new nonprofit is
necessary...
 Research if an organization already exists in your area that serves your cause.
By working together you avoid diluting the effect of fundraising dollars and
volunteer hours available in your geography.
 Consider fiscal sponsorship, in which an umbrella 501(c) organization incubates
your charitable nonprofit. Fiscal sponsors permit your cause to receive taxdeductible donations and often handle administrative paperwork.
2. Prepare to Incorporate
This article assumes that you will be creating a new nonprofit corporation, the most
common legal structure. Check availability of your desired name. The legal name of the
nonprofit corporation may not conflict with any other registered name.
Name Search:
LARA - Corporation Division Business Entity Search database
Name Reservation:
Optional
Recruit initial directors for your nonprofit board of directors. Michigan law requires at
least three board members for nonprofit corporations.
Identify the nonprofit’s registered agent. This individual or company receives notice of
lawsuit and other legal service for the corporation.
3. File Michigan Nonprofit Articles of Incorporation
File articles of incorporation to create your non-profit corporation.
Submit to:
State of Michigan
Department of Licensing and Regulatory Affairs (LARA)
Corporations, Securities, & Commercial Licensing Bureau
Corporations Division
http://www.michigan.gov/lara
Form:
Form CSCL/CD-502: Articles of Incorporation for use by Domestic Nonprofit
Corporations or
Form CSCL/CD-503: Articles of Incorporation for use by Ecclesiastical Corporations
Instructions: Michigan Nonprofit Corporation Filing Information
Filing Method: Mail or in person. MICH-ELF filers may file by fax or e-mail.
Fee: $20 + optional $50-1,000 expedite service
Turnaround: ~5-7 business days with returned documents in ~4 weeks. ~24 hours for
$50. Same day for $100. 2 hours for $500. 1 hour for $1,000. See Expedited Service
Request
Law: Michigan Compiled Laws (MCL) - Chapter 450: Corporations - Act 162 of 1982:
Nonprofit Corporations Act
Notes: Submit one original of this document. Upon filing, the document will be added to
the records of the Corporations Bureau. The original will be returned to your registered
office address, unless you specify otherwise.
Warning : The IRS requires specific language in the articles of incorporation to qualify
for 501(c)(3) federal tax exemption. Refer to IRS Pub 557 for guidance and sample
language.
4. Establish Company Records, Bylaws, and Hold First Meeting
Your filed articles of incorporation are the first document for your nonprofit corporate
records. Office supplies intended for nonprofit corporations help you stay organized and
save time: optionally, get a company record book, seal, and templates.
Create bylaws (potentially using a template), which is the governing document for the
nonprofit. This document defines how the corporation will run itself. You do not have to
file them with the state; keep them in your company records.
Hold the first meeting of the board of directors. At this meeting, the nonprofit should
approve the bylaws, elect additional directors, appoint officers, and approve initial
resolutions such as opening a company bank account. Keep minutes of this meeting.
5. Get a Federal Employer Identification Number (EIN)
Your nonprofit must obtain an EIN regardless of whether it will hire employees.
Submit to:
Internal Revenue Service
http://www.irs.gov/
Form: IRS Form SS-4
Guidance: IRS Pub 1635: Understanding Your EIN
Filing Method: Mail, phone, fax, or apply online with the IRS
Fee: $0
Turnaround: Immediately online
Notes: The IRS website is only available during certain hours. Print your EIN before
closing your session.
6. Get Michigan State Tax Identification Numbers/Accounts
Register with the Department of Treasury for Sales Tax, Use Tax, Income Tax
Withholding, Corporate Income Tax, Flow Through Withholding, Unemployment
Insurance Tax.
Submit to:
Michigan Department of Treasury
http://www.michigan.gov/treasury
Form: Form 518: Registration for Business Taxes
Filing Method: Mail, fax, or online
Fee: $0
Turnaround: 6+ weeks
Notes: Mail your application at least six weeks but not more than six months, before
you intend to start your business to allow your registration to be processed. The
treasury will forward your application to Unemployment Insurance Agency (UIA).
7. Apply for 501(c)
Save money by obtaining federal income tax exemption. This is most difficult and costly
step of setting up a nonprofit.
Submit to:
Internal Revenue Service
http://www.irs.gov/
Form: IRS Form 1023
Instructions: IRS Instructions for Form 1023
Guidance: IRS Pub 557: Tax-Exempt Status for Your Organization
Filing Method: Mail
Fee: $400 or $850
Turnaround: ~3-6 months. The IRS will return a Determination Letter which officially
recognized your exemption.
8. Apply for Michigan Tax Exemption(s)
Nonprofits are exempt from Michigan's 6% Michigan Corporate Income Tax (CIT). No
filing is needed.
501(c)(3) organizations are automatically exempt from sales and use tax on purchases.
No application is needed, simply start presenting Form 3372 and your IRS
Determination Letter to sellers.
Form: Form 3372: Michigan Sales and Use Tax Certificate of Exemption
Fee: $0
Notes: Attach IRS Determination Letter
More information:
Michigan Department of Treasury
http://michigan.gov/taxes
9. Register for Charitable Solicitation / Fundraising
Before soliciting any funds or hiring solicitors, you must complete your charitable
organization registration in each state where you will raise funds.
To file only in Michigan:
Submit to:
State of Michigan
Attorney General
http://www.michigan.gov/ag
Form: Initial Solicitation Registration Form
Filing Method: Mail or online
Fee: $0
Law: Michigan Charitable Organizations and Solicitations Act
Exemption:
Some organizations are exempt. For example, the Solicitations Act exempts
organizations that raise funds exclusively using volunteers and receive less than
$25,000 a year. These organizations must submit a request for exemption form.
Notes:
Verify that the attorney general's office received the registration form by searching for
the organization at www.michigan.gov/AGCharitySearch.
Following review if your initial registration or exemption, the Attorney General may
instruct your organization to complete additional forms.
10. Obtain Business Licenses & Permits
To run your business legally, you must obtain applicable licenses and permits. The
easiest way to navigate the wide range of federal, state, and local requirements is to
search by your business type and locality using the Small Business Administration
Business License & Permit look-up tool.
Nonprofits who wish to conduct bingo, raffles, and other charitable games must obtain a
license.
Submit to:
Michigan Lottery
Charitable Gaming
http://www.michigan.gov/cg/
Form: Qualification Information Form
Filing Method: Mail
Fee: varies
Turnaround: ~8 weeks
Law: Michigan Charitable Gaming
*** Ongoing filings***
You must file federal and state tax returns. You must also file:
 Michigan nonprofit corporations must file an annual report.
Submit to:
State of Michigan - Department of Licensing and Regulatory Affairs (LARA) Corporations, Securities, & Commercial Licensing Bureau - Corporations Division
http://www.michigan.gov/lara
Form: A pre-printed Form CBCS/CD-2000: Information Update is mailed to the
registered agent.
Filing Method: Mail, in person, or online
Fee: $20
Due: October 1st, beginning in the year after incorporation
Reminder: Form is mailed to the registered agent 3 months prior to due date.
Law: Required by section 911 of the Act, MCL 450.2911.
 Michigan charitable organizations renew annually with the Attorney General. The
expiration occurs 7 months after the close of the nonprofit's fiscal year.