Best Nonprofit Formation Services in Houston, TX

Forming a nonprofit in Texas involves several key steps to ensure legal compliance and eligibility for tax-exempt status. Here’s the process:

Choose a Name – Your nonprofit’s name must be unique and comply with Texas naming requirements. You can check name availability through the Texas Secretary of State.

Appoint a Registered Agent – This person or entity will receive legal documents on behalf of your nonprofit.

File a Certificate of Formation – Submit Form 202 to the Texas Secretary of State. This document establishes your nonprofit as a legal entity and includes details like the organization’s purpose, directors, and registered agent.

Create Bylaws and a Conflict of Interest Policy – Bylaws outline your nonprofit’s operating procedures, while a conflict of interest policy ensures ethical decision-making.

Hold an Organizational Meeting – At this meeting, you will officially adopt the bylaws, appoint board members, and document key decisions.

Obtain an EIN (Employer Identification Number) – This is required for tax filings and can be obtained for free from the IRS.

Apply for Federal Tax-Exempt Status – File IRS Form 1023 (or Form 1023-EZ for smaller nonprofits) to apply for 501(c)(3) status.

Apply for Texas State Tax Exemptions – Once the IRS approves your tax-exempt status, apply for exemption from Texas franchise and sales tax by submitting Form AP-204 to the Texas Comptroller.

Register for Fundraising (if applicable) – Depending on your activities, you may need to comply with state charitable solicitation requirements.

Maintain Compliance – File annual reports, maintain proper records, and adhere to federal and state nonprofit regulations to keep your nonprofit in good standing.

The time it takes to receive 501(c)(3) tax-exempt status depends on several factors, including the complexity of your application and the IRS’s processing times. Here’s a general breakdown:

Form 1023-EZ (for small nonprofits) – If your organization qualifies to file the streamlined Form 1023-EZ, approval typically takes 2 to 4 weeks.

Form 1023 (Standard Application) – For larger or more complex nonprofits filing the full Form 1023, approval can take anywhere from 3 to 6 months, or longer if the IRS requests additional information.

Expedited Processing – In rare cases, the IRS may expedite applications for organizations with urgent needs, such as those providing disaster relief.

To speed up the process, ensure your application is complete, accurate, and includes all required documentation.

Absolutely! Our firm provides comprehensive ongoing compliance services to ensure your nonprofit remains in good standing with both state and federal regulations. We assist with:

✅ Annual IRS Filings – Preparing and filing Form 990 (or 990-EZ/990-N) to maintain your 501(c)(3) tax-exempt status.

✅ State Compliance – Filing Texas franchise tax and sales tax exemption renewals as needed.

✅ Registered Agent Services – Ensuring you receive important legal and tax documents.

✅ Board Governance Support – Helping with bylaw updates, board meeting minutes, and conflict of interest policies.

✅ Fundraising & Solicitation Compliance – Assisting with charitable registration requirements for fundraising.

✅ Grant & Financial Reporting – Keeping your nonprofit in compliance with grant obligations and financial best practices.

By outsourcing your compliance to us, you can focus on your mission while we handle the legal and administrative details. Let’s talk about how we can customize a plan to fit your nonprofit’s needs!

The costs for forming a nonprofit in Houston, Texas, vary depending on filing fees, IRS applications, and optional professional services. Here’s a breakdown:

State of Texas Fees

✅ Certificate of Formation (Form 202) – $25 (filed with the Texas Secretary of State)

✅ Registered Agent (if using a service) – $150 per year (optional)

✅ Texas State Tax Exemption Application (Form AP-204) – Free

Federal Fees

✅ IRS Form 1023-EZ (for smaller nonprofits) – $275

✅ IRS Form 1023 (for larger or more complex nonprofits) – $600

Additional Costs (If Needed)

✅ Bylaws & Conflict of Interest Policy Drafting –  $500

✅ Nonprofit Compliance Assistance – Varies ($500 to $2,500+, depending on the service level)

✅ 501(c)(3) Expedited Processing (optional, if applicable) – No official fee, but may require additional assistance

✅ Fundraising & Charitable Registration – Varies by state if needed

Total Estimated Cost Range

💰 DIY Formation: $300 – $700

💰 Professional Services Included: $1,000 – $3,000+ (depending on complexity and services provided)

Yes! We specialize in forming various types of nonprofits in Texas, ensuring they are structured correctly for their mission and long-term success. Whether you’re starting a charity, foundation, association, or religious organization, we can help. Here are some of the nonprofit types we assist with:

✅ Public Charities – Organizations focused on education, poverty relief, healthcare, arts, and more.

✅ Private Foundations – Philanthropic organizations that grant funds to other nonprofits.

✅ Religious Organizations & Churches – Helping faith-based groups establish tax-exempt status.

✅ Trade & Professional Associations – Setting up 501(c)(6) organizations for industry groups.

✅ Social Clubs & Fraternal Organizations – Establishing 501(c)(7) nonprofits for community engagement.

✅ Advocacy & Civic Organizations – Assisting with 501(c)(4) social welfare organizations.

We customize our approach based on your specific mission and goals, handling all legal and compliance aspects to get your nonprofit up and running smoothly. Let’s discuss how we can tailor our services to your organization’s needs!