To start a nonprofit in Maryland, follow these key steps:
- Research and plan your nonprofit's purpose, mission, and ensure that no similar organization exists already serving the same cause.
- Choose a unique name for your nonprofit.
- Draft bylaws and a conflict of interest policy for internal governance.
- Incorporate your nonprofit by filing the Maryland Articles of Incorporation with the Maryland State Department of Assessments and Taxation (SDAT), including a dissolution clause.
- Obtain a Federal Employer Identification Number (EIN) from the IRS.
- Hold an organizational meeting to adopt bylaws, accept articles of incorporation, and elect officers and directors.
- Apply for federal tax-exempt status under IRS 501(c)(3) by filing IRS Form 1023.
- Register for charitable solicitation in Maryland if you plan to fundraise.
- Apply for state tax-exemptions and any required registrations such as the Maryland Combined Registration Application.
Costs include approximately $100 for filing incorporation, $275 or $600 for IRS tax exemption fees, and variable fees for charitable registration. Timelines vary from approximately 10+ weeks for incorporation to a few months for IRS tax status.
