Contact your state tax agency to find out what steps you must take. Next you must create bylaws, the internal rules that govern your nonprofit corporation. Bylaws contain rules and procedures for holding meetings, voting on issues and electing directors and officers. To create bylaws, you can either follow the instructions in a self-help resource or hire a lawyer in your state to draft them for you. Typically, the bylaws are adopted by the corporation's directors at their first board meeting.
Many states allow nonprofits to have just one director, but other states require at least three.
Hold a Directors' Meeting The purpose of the first meeting of the board of directors is to conduct the initial business of the corporation and take care of other formalities, such as recording the receipt of federal and state tax exemptions. After the meeting is completed, minutes of the meeting should be created and filed in your corporate records book. For more information, see Running Your Nonprofit Corporation . Obtain Licenses and Permits Many businesses, whether operating as for-profit or nonprofit corporations, partnerships or sole proprietorships, are required to obtain state or local licenses and permits before commencing business. Get the legal lowdown on what makes a nonprofit corporation exempt from federal income taxes with this user-friendly eGuide.