Not-for-Profit Law on Long Island, NY

The Process of Forming a Not-for-Profit Corporation in New York

If you are interested in forming a not-for-profit corporation in New York, you must follow a number of different steps. Fortunately, the process can be made simple when you enlist the help of a Long Island attorney from Jonathan E. Kroll & Associates, PLLC. We can walk you through the complex requirements and ensure that your paperwork is adequately completed and properly filed. To gain a general understanding of how this process works, however, we encourage you to review the steps below.

10 Steps for Completing the Department of State's Certificate of Incorporation:

1. Choose a name for the not-for-profit corporation
2. Provide a statement of the corporation's purpose
3. Gain approval from applicable government agencies
4. Indicate the corporation's type classification (A, B, C or D)
5. State the county in which the corporation will be located
6. List the names and addresses of the initial directors
7. Include necessary provisions for tax exempt status
8. Incorporator must sign the Certificate of Incorporation
9. Pay the $75 filing fee (check, cash, credit card or money order)
10. Submit the completed form to the Department of State

New York NPCL §201 – Classifying a Not-for-Profit Corporation

According to New York law, a not-for-profit corporation can be formed for a number of different reasons. In all instances, however, the "incorporators" would be prohibited from creating the corporation for the purpose of financial gain. Unless otherwise permitted by the Not-for-Profit Corporation Law (NPCL), this means that the non-profit's members would be exempt from cashing in on the distribution of corporate assets, income of profit.

For this reason, the incorporators would be required to provide sufficient reasoning for the formation of their not-for-profit. In doing so, the classification of the corporation would be established thereafter—which would subsequently determine whether or not federal income tax exemptions would apply.

In accordance with NPCL §201, the applicable classifications would be as follows:

• Type A: Corporations that will be formed for any lawful non-business purpose that includes, but is not limited to: civic, patriotic, political, social, fraternal, athletic, agricultural, horticultural, animal husbandry, and for a professional, commercial, industrial, trade or service association.
• Type B: Corporations that will be formed for any non-business purpose that includes, but is not limited to: charitable, educational, religious, scientific, literary, cultural or for the prevention of cruelty to animals or children.
• Type C: Corporations that will be formed for any lawful business purpose to achieve a lawful public or quasi-public objective. Although these corporations may be organized for purposes typically pursued by a business for profit, non-profits cannot be formed for financial gain.
• Type D: Corporations that will be formed under the NPCL when such formation is authorized by any other corporate law of this state for business, non-business, pecuniary or non-pecuniary purpose that is specified by the other law—even if it falls within types A, B or C.

Looking for help? Contact Jonathan E. Kroll & Associates, PLLC today.

Managing the task of forming a not-for-profit corporation in New York is not easy. Not only will you need to gain approval from specified government agencies, but you may also need to ensure that you qualify for tax exempt status under the Internal Revenue Code. For this reason, the knowledgeable legal team at Jonathan E. Kroll & Associates, PLLC encourages you to find out how we can help.