Information Required to Form a New Mexico Nonprofit
Any organization that wants to become a New Mexico nonprofit must file documents called “articles of incorporation” (or certificate of incorporation). Before filing the articles of incorporation, the certain requirements and laws of the incorporation state should be well known and researched. The legal jargon included in this phase can be difficult so it is best to prepare for this beforehand.
Most legal documents, especially when it comes to incorporation, require all forms to be completed. Simply check the “nonprofit” portion of the document, review the regulations and fees depending on the state, and then send in the filing fees. Tax exemption, and the legalities especially, can be a complicated subject. We will spend the next few sections describing the law that governs nonprofit organizations.
Naming Your Organization
Selecting a name that will remain with your organization for many years is a major decision. Choose something that relates to the nonprofit that you operate and check with a lawyer to see if it is available for use. There are many “typical” nonprofit names, but everything is subject to the state’s wishes. In order to avoid confusion, the state will determine whether or not your name sounds similar to organizations that already exist.
Actions of Your Organization
In order to be accepted to nonprofit status, you will need to explain what your goals and missions are. If profit is not a motive to found your corporation, then the state will want to know the reasons why your organization should exist. In this section you should be able to provide evidence that your organization will benefit society.
If you are filing for a tax exemption under nonprofit law then you will still be subject to the state’s wishes. If you apply for tax-exempt status then you must petition the IRS through Form 1023 . The category of your corporation is crucial to determining whether or not your organization should be granted tax-exempt status as well. In most cases the IRS is trying to determine whether your nonprofit is charitable or provides society with a tangible good.
Nonprofit organizations that find it hard to navigate the complicated incorporation process should seek a nonprofit attorney. They can help provide the articles of incorporation, the 1023 form, and any guidance necessary to complete the process.
A registered agent is required for the incorporation and tax exemption processes for most nonprofit organizations. The registered agent should be included with the articles of incorporation along with any personal details that are relevant for the state to see. The registered agent should be available during business hours and is also responsible for lawsuits and other issues that the nonprofit organization might have.
Just like the registered agent, an incorporator helps to prepare and file the paperwork for the articles of incorporation. In many cases this is an incorporation attorney, but the person’s name, address and personal details are included on the articles of incorporation.
Like a company, there are organization directors that organize much of the direction the nonprofit takes. They are included in the articles of incorporation even though they do not necessarily worry about day-to-day activities. The directors are usually responsible for appointing officers as well.
Some organizations are too small to have more than a couple of people. Nonetheless, others have officers, which also need to be included on the articles of incorporation. If a nonprofit is big enough then these officers oversee daily activities. They are composed primarily of positions like President, Vice-President, Secretary, and Treasurer, which make sure that the nonprofit is able to reach it’s goals.
Physical Address of Your Organization
While filing for a nonprofit organization you will be required to include a physical address as part of the form 1023 application for recognition as a tax exempt organization as classified under 501(c)(3).
Take the time to understand the legal requirements and specifications of applying for articles of incorporation. This will save you time and money. Hiring a nonprofit attorney, though initially expensive, will save you a tremendous amount in time, money, and reduced stress in the long run.
Below are some topics of interest to people seeking to form a nonprofit entity. Many people don’t realize the strings that come attached with operating a nonprofit entity. For more information about these particular topics we recommend you seek the advice of an attorney licensed to practice law in the state you operate.