How to Start Your Nonprofit in Idaho

Select a nonprofit name

The first step is picking a good name for your nonprofit company. This name must be unique and transparently describe your organization’s goals. The name should also include an identifying term to help the public understand what kind of business it is, in this case, a word such as “nonprofit.” You can review names currently in use on Idaho’s Business Search website.

Using Idaho’s name reservation services is recommended to save your name from being taken during incorporation. Depending on your filing method, this reservation costs $20 to $40 and lasts up to 4 months.

Appoint a registered agent

All businesses, including nonprofits, must hire a registered agent to help them operate. A registered agent will receive the legal documents for the nonprofit and report any critical mail. Your agent can be anyone available during business hours with a physical address in Idaho. While your agent can be a friend, family member, or yourself, we recommend hiring a professional for legal safety reasons.

Submit the Articles of Incorporation

Once you have the basic information about your business, you must file your Articles of Incorporation. This document will tell the government about your nonprofit’s plans and internal organization. You will need your business’s name, address, registered agent information, and other related information to complete this document. Completing and filing this document with the state will officially create your Idaho nonprofit.

Filing your Articles of Incorporation will cost $30 online and $50 by mail.

Create corporate bylaws

Corporate bylaws are necessary documents that describe your nonprofit’s organizational structure and how its members will run it. They also tell the organization’s members their roles in the company. 

After creating these bylaws, the company’s board of directors must adopt them. This discussion should be held during your company’s first organizational meeting. Only after the board directors accept the bylaws can they be implemented in your organization.

Acquire your Employer Identification Number (EIN)

You must have an Employer Identification Number (EIN) to run your nonprofit. This number allows business owners to do necessary business activities such as applying for tax exemptions, completing payroll, or opening a business bank account. 

You can get your EIN for free through the IRS’s website.

Apply for 501(c)(3) status

Nonprofits are not automatically given the 501(c)(3), or federal tax-exemption, status upon creation. To acquire your 501(c)(3) status, file either Form 1023 or Form 1023-EZ with the IRS. This document will cover your nonprofit’s finances, internal structure, and what activities you do. Form 1023-EZ costs $275 to file, but there are stricter regulations on who can apply. Form 1023 will cost $600 to file. 

For more information about which form you qualify for, review the IRS’s Form 1023-EZ website.

Obtain business licenses and permits

While Idaho does not require nonprofits to obtain a general business license, you might need to apply for specific local permits. Check with your local business licensing department to see if you need any licenses before operating.

Maintain compliance

Nonprofits must comply with Idaho’s annual reporting requirements. Each year, nonprofits must submit an annual report online to the Secretary of State by their establishment anniversary date, ensuring their basic information and activities remain current with the state.

Filing your annual reports is free in Idaho.

• Limited liability: Like many business structures, incorporated Idaho nonprofit provide their members with certain asset protections. Limited liability protection prevents the owners’ assets from being taken if the business faces debts or legal trouble.
• Public credibility: Incorporating your business as a nonprofit makes it appear more established and trustworthy. People are more likely to support a credible nonprofit since they know their donations are being used for their intended purpose.

• Tax exemptions: Nonprofits in Idaho can be exempt from federal and state taxes. This exemption helps the company save money and have more access to funds to achieve its goals.
• Strong community support: Nonprofits in Idaho often have access to many volunteers and communities that want to support them. If your business is credible and your cause aligns with the community’s needs, you will find many people to help you achieve your goals.