How to Start a Nonprofit Corporation in Oklahoma (2024 Guide)

If you would like to form a corporation in Oklahoma, you should also consider starting a nonprofit corporation since it plays a crucial role in our society, addressing a wide range of community needs and positively impacting countless lives. Starting a nonprofit corporation in Oklahoma can be rewarding, but it requires careful planning, dedication, and a thorough understanding of the various legal and financial requirements.

This comprehensive guide will walk you through Starting a Nonprofit Corporation in Oklahoma, from initial planning to ongoing compliance, so that you can make a meaningful difference in your community.

If you want to know more about nonprofit corporations, you may read the whole article until the end, which the Webinarcare Editorial Team had thorough research. Before starting a nonprofit corporation in Oklahoma, you must cross-check all the factors and be guided by the steps.

How to Start a Nonprofit Corporation in Oklahoma

On this page, you’ll learn about the following:

What is a Nonprofit Corporation?
Steps on How to Start a Nonprofit Corporation in Oklahoma
Cost of Forming a Nonprofit Corporation in Oklahoma
FAQs

What is a Nonprofit Corporation?

A nonprofit corporation is a legal entity formed under a given state’s specific laws and regulations in the United States. It is created to serve a public or mutual benefit rather than generating profits for its owners or shareholders. Nonprofit corporations typically operate in education, healthcare, social services, arts and culture, and environmental conservation.

In a nonprofit corporation, any surplus income the organization generates is reinvested into its programs and services rather than distributed to shareholders or members. This allows nonprofits to focus on fulfilling their mission and addressing community needs without the pressure to maximize profits.

An example of a nonprofit corporation in Oklahoma is Regional Food Bank of Oklahoma – Distributes food to those in need across the state, working to end hunger..

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Steps on How to Start a Nonprofit Corporation in Oklahoma

To start a nonprofit corporation in Oklahoma, you must follow the below steps that, include research and planning, choosing a corporate name, appointing directors, filing for Certificate of Incorporation, creating corporate bylaws, holding the initial board of directors, issuing stock, obtaining required licenses and permits, registering with state tax agencies, Annual reporting and ongoing compliance. All these steps are basic ones. It can be changed depending on the type of corporation you form and the nature of your business.

Step 1: Research and Planning

Before starting your nonprofit corporation in Oklahoma, you must research and plan. This stage is critical to the success of your nonprofit, as it will help you refine your mission, identify potential supporters, and avoid pitfalls. By conducting thorough research and developing a well-informed plan, you can establish a nonprofit corporation that makes a real difference in the lives of those you serve.

Step 2: Choose a Name for the Nonprofit

Once you have a clear vision for your Oklahoma nonprofit corporation, it’s time to choose a name. Your organization’s name should be unique, memorable, and reflective of your mission and purpose. Follow these steps to choose and register your nonprofit’s name in Oklahoma:

Consider the Mission and Purpose when Choosing the Name

Your nonprofit’s name should be closely tied to its mission and purpose, making it clear to potential supporters what your organization is about. Choose a name that is meaningful and easy to remember, as this will help with marketing and fundraising efforts.

Check for Name Availability with the Oklahoma Secretary of State

Before registering your nonprofit’s name, you must ensure another organization still needs to use it in Oklahoma. You can do this by checking the Oklahoma Secretary of State ‘s online database or contacting their office directly.

Register the Name

Depending on your Oklahoma ‘s requirements, you may need to register your nonprofit’s name with the Secretary of State. This typically involves completing a name reservation of 60 days or registration form and paying an online reservation fee of $25, and mail reservation fee of $25. Be sure to follow your state’s specific guidelines and procedures for name registration.

To check the availability of your desired corporate name, you can search the Oklahoma Secretary of State’s business name database and Oklahoma Business Name Search.

If your nonprofit corporation plans to operate under a name other than its legal name, you may also need to register a fictitious or “doing business as” (DBA) name.

The DBA filing can be done by two methods, by mail and in person., which costs around $25. In addition, the DBA’s validity in Oklahoma is Indefinite, which you can file in Oklahoma Secretary of State.

You can check out How to File a DBA in Oklahoma for clearer understanding.

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Step 3: Hire a Registered Agent

Hiring a Registered Agent is essential in starting a nonprofit corporation. Registered Agent is a person or company responsible for receiving important legal documents, tax notices, and other correspondence for your nonprofit corporation. They ensure that your nonprofit corporation remains compliant with state regulations and requirements. There are Oklahoma Registered Agent Services to check in forming Oklahoma Nonprofit Corporation.

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Step 4: Establish Governance and Bylaws

With your nonprofit’s name in place, it’s time to establish your organization’s governance structure and create bylaws. These important documents will outline how your nonprofit will be run, including the roles and responsibilities of board members, the decision-making process, and the procedures for managing finances and record-keeping.

Choose the Initial Board of Directors: Your nonprofit’s board of directors will guide your organization’s activities and ensure its long-term success. Choose individuals passionate about your mission, bring diverse skills and expertise to the table, and are willing to commit the time and effort needed to fulfill their responsibilities as board members. In Oklahoma, you need to have at least One directors for you to operate a nonprofit corporation.
Create Bylaws: Your bylaws are the governing document for your nonprofit, outlining the roles and responsibilities of board members, the decision-making process, and the procedures for managing finances and record-keeping. Be sure to cover board meetings, voting, committees, officer positions, conflicts of interest, and amendment procedures. Your bylaws should be tailored to your organization’s needs and requirements and developed in consultation with an attorney experienced in nonprofit law.
Hold the First Board Meeting: Once your bylaws have been drafted, hold your first board meeting to review and approve them. This meeting should also include the election of officers, such as the president, vice president, secretary, and treasurer. Be sure to document the meeting’s discussions and decisions in meeting minutes, as these records will be important for maintaining your nonprofit’s legal compliance.

Step 5: Incorporate the Nonprofit

The next step in starting your Oklahoma nonprofit corporation is to formally incorporate your organization with the Oklahoma Secretary of State. Incorporation establishes your nonprofit as a separate legal entity and provides limited liability protection for its board members and officers. To incorporate your nonprofit, follow these steps:

Prepare the Certificate of Incorporation

The Certificate of Incorporation is the legal document formally establishing your nonprofit corporation. This document should include your organization’s name, purpose, Registered Agent, and principal office address. Be sure to follow your state’s specific requirements for the content and format of the Certificate of Incorporation.

File the Certificate of Incorporation

Once your Certificate of Incorporation is complete, please submit them to the Oklahoma Secretary of State’s office, along with any required filing fees. The filing process may vary depending on your state, but it typically involves mailing or submitting the documents online. Keep a copy of the filed Certificate of Incorporation for your records.

Filing Certificate of Incorporation in Oklahoma may be done with three methods that are online, by mail and in-person. The Certificate of Incorporation fee may vary from different state. However, in Oklahoma, it costs $25 for online, by mail filing or in person filing..

Online Filing: Create an account/Log in to the SOS site, get the online form, fill it, and submit online
Offline filing: Send the form by mail or drop it off in person at Oklahoma Secretary of State, 421 N.W. 13th Suite 210, Oklahoma City, OK 73103

Step 6: Apply for State and Federal Tax Exemptions

Your organization may be eligible for state and federal tax exemptions as a nonprofit corporation. Obtaining tax-exempt status can save your nonprofit money and make it more attractive to potential donors. To apply for tax exemptions, follow these steps:

Obtain an Employer Identification Number (EIN)

An EIN in Oklahoma is a unique number the Internal Revenue Service (IRS) assigns to your organization. You’ll need this number to apply for tax-exempt status and open a bank account for your nonprofit. You can obtain an EIN by completing the online application on the IRS website or submitting Form SS-4 by mail or fax.

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Apply for Federal Tax-Exempt Status (501(c)(3))

To apply for federal tax-exempt status, you’ll need to complete and submit Form 1023 or Form 1023-EZ, depending on the size and complexity of your organization. This application requires detailed information about your nonprofit’s finances, governance, and programs. Be prepared to provide supporting documentation, including your bylaws, Certificate of Incorporation, and financial projections. You’ll also need to pay a filing fee, which varies depending on the size of your organization and the form you submit.

Apply for Oklahoma Tax-Exempt Status

In addition to federal tax-exempt status, your nonprofit may be eligible for state tax exemptions. The process for applying for state tax-exempt status varies by state, so research your specific state’s requirements and procedures. This may involve submitting additional forms, documentation, and fees to the Oklahoma Tax Commission.

Step 7: Obtain the Necessary Licenses and Permits

Depending on your nonprofit’s activities and location, you may need to obtain various licenses and permits to operate legally—research local, state, and federal requirements and apply for any necessary licenses and permits. Be sure to maintain compliance by renewing licenses and permits as needed and staying up-to-date on any regulation changes.

Step 8: Develop a Fundraising Plan and Strategy

Fundraising is critical to the success of your Oklahoma nonprofit corporation, providing the financial resources needed to carry out your mission and programs. Develop a comprehensive fundraising plan that outlines your goals, strategies, and timelines for raising funds. This plan should include various funding sources, such as grants, donations, and special events. Create marketing materials and strategies to promote your nonprofit’s fundraising efforts and engage potential supporters.

Step 9: Open a Bank Account for the Nonprofit

With your legal and financial foundations in place, it’s time to open a bank account for your nonprofit corporation. Choose a bank that offers services tailored to nonprofits and provides the features and support your organization needs. To open an account, you’ll typically need to provide your EIN, Certificate of Incorporation, bylaws, and a resolution authorizing the account opening. Establish proper financial controls and procedures to ensure responsible management of the organization’s funds.

You can check out the Oklahoma Best Banks to know which bank will suit your nonprofit corporation.

Step 10: Establish Record-Keeping Systems

Effective record-keeping and reporting are essential for maintaining your nonprofit’s legal and financial compliance and demonstrating transparency and accountability to your supporters. Set up systems for tracking financial transactions, maintaining records of your organization’s activities, and reporting to the IRS, state, and other relevant agencies. Stay up-to-date on reporting requirements and deadlines to ensure your nonprofit remains in good standing. Hiring a CPA in Oklahoma for this reporting system is best.

Step 11: Launch and Promote the Nonprofit

With your Oklahoma nonprofit corporation officially established and your financial and legal foundations in place, it’s time to launch your organization and begin making a difference in your community. Develop a marketing plan to promote your nonprofit’s mission and services, including creating a website, social media presence, and other marketing materials. Network with other nonprofits, community organizations, and stakeholders to build partnerships and collaborations to strengthen your organization’s impact.

Step 12: Ongoing Compliance and Management

Starting a nonprofit corporation is just the beginning – maintaining your organization’s legal and financial compliance is an ongoing responsibility. Stay informed about changes in nonprofit laws and regulations, file required Annual Reports and financial statements, and regularly review and update your bylaws, policies, and procedures as needed. Foster positive relationships with board members, volunteers, and supporters to ensure your nonprofit’s continued success.

Cost of Forming a Nonprofit Corporation in Oklahoma

In forming a nonprofit corporation in Oklahoma, the filing and Annual fees must be paid. Without it, your nonprofit corporation won’t operate. In Oklahoma, the nonprofit costs $25 for online, by mail filing or in person filing., and should file an Annual Report. You should ensure you comply with all the necessary fees and costs so your Oklahoma nonprofit corporation will run successfully and smoothly.

Is Forming a Nonprofit Corporation in Oklahoma Worth It?

Forming a nonprofit corporation in Oklahoma can be worth it if you are dedicated to a specific cause and prepared to meet the challenges and responsibilities of running a nonprofit organization. It is essential to carefully consider your goals and resources and consult with a Business Attorney in Oklahoma or other professionals experienced in nonprofit formation and management to ensure that you are making the best decision for your situation.

FAQs

What is the process for forming a non-profit corporation in Oklahoma?

To form a non-profit corporation in Oklahoma, you must file Articles of Incorporation with the Oklahoma Secretary of State.

How much does it cost to file Articles of Incorporation in Oklahoma?

The fee to file Articles of Incorporation in Oklahoma is currently $50.

What are the requirements for naming a non-profit corporation in Oklahoma?

The name of a non-profit corporation in Oklahoma must include the words “corporation” or “incorporated” and cannot include any words that suggest it’s a for-profit business.

Are non-profit corporations exempt from taxes in Oklahoma?

Non-profit corporations in Oklahoma can be exempt from state taxes, but must file for tax-exempt status with the Oklahoma Tax Commission.

Does a non-profit corporation in Oklahoma need to have a registered agent?

Yes, a non-profit corporation in Oklahoma must have a registered agent who is a resident of the state or a corporation authorized to conduct business there.

What are the reporting requirements for non-profit corporations in Oklahoma?

Non-profit corporations in Oklahoma must file an annual report with the Secretary of State and also maintain certain records, such as meeting minutes.

Can a non-profit corporation in Oklahoma engage in political activity?

Yes, but the non-profit corporation must follow certain rules and guidelines in order to engage in political activity and maintain their tax-exempt status.

How do I get a federal tax ID number for my non-profit corporation in Oklahoma?

To get a federal tax ID number, also known as an EIN, for your non-profit corporation in Oklahoma, you can file Form SS-4 with the IRS.

What is the process for obtaining tax-exempt status for my non-profit corporation in Oklahoma?

To obtain tax-exempt status for your non-profit corporation in Oklahoma, you must file Form 1023 with the IRS and pay a fee.

What are the benefits of 501(c)(3) tax-exempt status in Oklahoma?

Benefits of 501(c)(3) tax-exempt status in Oklahoma include being exempt from federal income tax, eligibility to receive tax-deductible donations, and potential access to grant funding.

Can a non-profit corporation in Oklahoma pay its directors or officers?

In general, no. Oklahoma law prohibits non-profit corporations from paying their directors or officers except in limited circumstances.

Are there any grant opportunities available for non-profit corporations in Oklahoma?

Yes, there are grant opportunities available for non-profit corporations in Oklahoma through various government agencies and private foundations.

Does a non-profit corporation in Oklahoma need to have bylaws?

Yes, a non-profit corporation in Oklahoma should have bylaws that outline how the organization is governed and operated.

Is it possible to convert a for-profit business into a non-profit corporation in Oklahoma?

Yes, it is possible to convert a for-profit business into a non-profit corporation in Oklahoma, but it must follow certain procedures and requirements.

What is the difference between a non-profit corporation and a charitable trust in Oklahoma?

A non-profit corporation is a legal entity organized for purposes other than making a profit, while a charitable trust is a type of trust established for charitable purposes.

Does a non-profit corporation in Oklahoma need insurance?

Yes, a non-profit corporation in Oklahoma should have insurance to protect against potential liability and other risks.

Is it necessary to hold annual meetings for a non-profit corporation in Oklahoma?

Yes, holding annual meetings is a legal requirement for non-profit corporations in Oklahoma.

Can a non-profit corporation in Oklahoma sell goods or services?

Yes, a non-profit corporation in Oklahoma can sell goods or services, but must allocate the proceeds to further the organization’s non-profit purposes.

What is the process for dissolving a non-profit corporation in Oklahoma?

To dissolve a non-profit corporation in Oklahoma, the organization must follow certain procedures outlined in the state’s nonprofit corporation laws.

How long does it take to form a non-profit corporation in Oklahoma?

The time it takes to form a non-profit corporation in Oklahoma can vary depending on a number of factors, but the process typically takes several weeks.

What is the minimum number of directors a non-profit corporation in Oklahoma can have?

A non-profit corporation in Oklahoma is required to have at least one director.

Can individuals serve as both a director and an officer for a non-profit corporation in Oklahoma?

Yes, an individual can serve as both a director and an officer for a non-profit corporation in Oklahoma.

What happens if a non-profit corporation in Oklahoma fails to file its annual report?

If a non-profit corporation in Oklahoma fails to file its annual report, the organization can lose its legal status and tax-exempt status.

Is it possible for non-profit corporations in Oklahoma to have paid employees?

Yes, non-profit corporations in Oklahoma can have paid employees.

What qualifies as a charitable purpose for a non-profit corporation in Oklahoma?

The term “charitable purpose” in Oklahoma’s nonprofit corporation laws includes a wide range of activities related to advancing education, religion, health, and more.

Are non-profit corporations in Oklahoma required to hold any licenses or permits?

Non-profit corporations in Oklahoma may be required to obtain certain licenses or permits depending on their activities, such as charitable gaming or alcohol sales.

How can I find resources and support to start and manage a non-profit corporation in Oklahoma?

The Oklahoma Center for Nonprofits is a great resource for finding support and information about starting and managing a non-profit corporation in Oklahoma.

What is a non-profit corporation in Oklahoma?

In Oklahoma, a non-profit corporation is a legal entity formed for charitable, religious or educational purposes, that does not distribute profits or dividends.

What is the first step to starting a non-profit corporation in Oklahoma?

The first step is to choose a unique name for your organization and confirm its availability with the Oklahoma Secretary of State’s office.

How can I check if a name is available for my Oklahoma non-profit corporation?

The Oklahoma Secretary of State’s office has an online name availability search tool that you can use to search for available names.

Who can be the incorporator for an Oklahoma non-profit corporation?

Any individual who is over 18 years old and has capacity to contract can be the incorporator for your Oklahoma non-profit corporation.

Can I use a registered agent service for my Oklahoma non-profit corporation?

Yes, you can use a registered agent service to receive legal documents on behalf of your Oklahoma non-profit corporation.

What are the specific requirements for the articles of incorporation for an Oklahoma non-profit corporation?

The articles of incorporation for an Oklahoma non-profit corporation must include the organization’s name, purpose, period of duration, and registered agent information.

How much does it cost to file the articles of incorporation for an Oklahoma non-profit corporation?

The filing fee for the articles of incorporation for an Oklahoma non-profit corporation is $50.

Do I have to include a board of directors in the articles of incorporation for an Oklahoma non-profit corporation?

No, you do not have to include the board of directors in the articles of incorporation for an Oklahoma non-profit corporation.

How many directors are required for an Oklahoma non-profit corporation?

The Oklahoma Nonprofit Corporation Act requires that there are at least three directors for an Oklahoma non-profit corporation.

What is the purpose of bylaws for an Oklahoma non-profit corporation?

Bylaws outline guidelines for governing, meeting and decision-making policies specific to your Oklahoma non-profit corporation.

How often should the board of directors meet for an Oklahoma non-profit corporation?

Boards of directors should meet at least once a year for an Oklahoma non-profit corporation.

What are the requirements for retaining tax-exempt status for an Oklahoma non-profit corporation?

Oklahoma non-profit corporations must have federal tax-exempt status from the IRS.

To whom should I mail the Oklahoma non-profit corporation annual report?

You should mail the annual report to the Oklahoma Secretary of State’s office.

How much is the annual fee to renew a non-profit corporation in Oklahoma?

The annual fee to renew your Oklahoma non-profit corporation is $25.

Can an Oklahoma non-profit corporation pay its board of directors?

According to Oklahoma law, the board of directors of a non-profit corporation in Oklahoma must serve without compensation.

What is a charitable solicitation license in Oklahoma?

A charitable solicitation license in Oklahoma is required for nonprofit corporations in Oklahoma whenever they wish to solicit money online, by mail, telephone, or in any way from Oklahoma state residents.

What is the process for obtaining a charitable solicitation license in Oklahoma?

The process for obtaining a charitable solicitation license in Oklahoma is to complete and submit an application to the Oklahoma Attorney General’s office.

Who can request a copy of an Oklahoma non-profit corporation’s tax-exempt status?

Anyone can request a copy of an Oklahoma non-profit corporation’s tax-exempt status from the IRS.

How long does it take to obtain tax-exempt status for an Oklahoma non-profit corporation?

Obtaining tax-exempt status for an Oklahoma non-profit corporation can take anywhere from three to 12 months.

Can an Oklahoma non-profit corporation engage in political activities?

Oklahoma non-profit corporations can engage in some political activities but have significant restrictions and limitations placed on opening advocating for a political candidate or party.

What forms must be submitted to obtain tax-exempt status for an Oklahoma non-profit corporation?

To obtain tax-exempt status, an Oklahoma non-profit corporation must submit Form 1023 or 1023-EZ to the IRS.

What is the formation process to start a 501(c)(3) non-profit in Oklahoma?

The formation process for a 501(c)(3) non-profit in Oklahoma includes registering the entity with the Oklahoma Secretary of State, applying for federal tax exempt status with the Internal Revenue Service (IRS), and procuring all Oklahoma business licenses, permits and certifications specific to the non-profit industry.

Can an Oklahoma non-profit corporation convert into a for-profit corporation?

Yes, an Oklahoma non-profit corporation can convert into a for-profit corporation, provided that it follows the proper procedures and adheres to Oklahoma law.

Who can dissolve an Oklahoma non-profit corporation?

An Oklahoma non-profit corporation can be dissolved by its board of directors.

Is insurance required for an Oklahoma non-profit corporation?

Not necessarily, but obtaining liability insurance can protect the organization in the event of unforeseen legal proceedings, damages and litigation.

Can an Oklahoma non-profit corporation have paid employees?

Yes, an Oklahoma non-profit corporation can have paid employees.

What documents must be submitted to form an Oklahoma non-profit corporation that wants tax-exempt status?

To form a non-profit corporation that wants tax-exempt status, the business owner needs to file specific documents with the Oklahoma Secretary of State’s (SOS) office and with the Internal Revenue Service (IRS), submit a declaration of solicitation materials, a financial report to the Oklahoma Office of the Attorney General and tax documents with the Oklahoma Tax Commission.

How long does it take to form and get tax-exempt status for an Oklahoma non-profit corporation?

Although specific schedule may vary depending on filing accuracy and timing or other unforeseen issues but generally it takes about four weeks to federally register the 501(c)(3), gain tax-exempt status, set up state tax identification numbers and register with Oklahoma city and state offices.

Does Oklahoma non-profit corporation require to publish its articles initially after its formation?

No, Oklahoma non-profit corporation is not required to publish its articles anywhere initially nor anywhere afterwards.

Why You Should Start Oklahoma Nonprofit

One of the main advantages of starting a nonprofit organization is the ability to address important social issues in your community. Nonprofits have the flexibility to focus on a wide range of issues, from animal welfare to education to healthcare. By starting a nonprofit in Oklahoma, you have the opportunity to tailor your organization to meet the specific needs of your community.

Additionally, starting a nonprofit can be a great way to bring people together to work towards a common goal. Nonprofits rely heavily on volunteers, donors, and supporters to carry out their missions. By starting a nonprofit in Oklahoma, you can create a space for like-minded individuals to come together and work towards a shared vision.

Furthermore, starting a nonprofit can have a positive impact on your own personal and professional development. As a nonprofit founder, you will have the opportunity to develop valuable skills such as leadership, communication, and project management. You will also have the chance to build a network of contacts in your community and beyond.

Starting a nonprofit can also provide you with a sense of purpose and fulfillment. Knowing that you are making a difference in the lives of others can be incredibly rewarding. Whether you are passionate about improving education, protecting the environment, or promoting social justice, starting a nonprofit in Oklahoma can be a way to channel that passion into action.

Finally, starting a nonprofit in Oklahoma can allow you to leave a lasting legacy in your community. Nonprofit organizations have the potential to create long-lasting change and impact. By starting a nonprofit, you can help create a more just, equitable, and compassionate society for generations to come.

In conclusion, starting a nonprofit in Oklahoma can be a challenging but incredibly rewarding endeavor. Whether you are driven by a desire to address a specific social issue, build community, develop your own skills, or make a meaningful impact, starting a nonprofit is a powerful way to drive positive change. So, if you are considering starting a nonprofit in Oklahoma, I encourage you to take the leap and embark on this exciting journey.

Conclusion

Starting a nonprofit corporation is a rewarding and challenging endeavor that requires careful planning, dedication, and a thorough understanding of the various legal and financial requirements. By following the steps outlined in this comprehensive guide, you’ll be well on your way to creating a nonprofit that makes a meaningful difference in your community. As you embark on this journey, remember to stay focused on your mission and your organization’s impact on the lives of those you serve. Never underestimate the power of a passionate, committed team working together to improve the world.