- Serving Taxpayers Since 1993
- File In Person or Fully Virtual
- Year-Round Help, Not Just Tax Season
- Nonprofit & Church Specialists
- Flexible Refund & Payment Options
New neighborhoods bring new causes. In Katy, many nonprofits start the same way: a few parents, a church small group or a circle of neighbors sees a need and starts meeting it. Then donations come in, and someone asks where the money should go. Starting a nonprofit in Texas takes a handful of filings, and the order matters. We help prepare and file the paperwork, so you can keep your energy on the mission.
When You Need Help to Start a Nonprofit
The right time is usually when donations show up. Gifts deposited in a volunteer’s own bank account can look like that person’s income, and the donors get no deduction for them. Grant makers want a formal group with its own account. Signing a lease for meeting space or hiring a part-time coordinator is cleaner when the group stands in its own name.
Our Process to Start a Nonprofit
Here is the usual order. You choose a name, a purpose and at least three directors, which the Texas form calls for. Then the Certificate of Formation for a nonprofit corporation, Form 202, is filed with the Texas Secretary of State. The state’s instructions for Form 202 point out that the form does not include the extra purpose wording the IRS or the Comptroller may want for tax exemption. We help prepare and file the paperwork with that in mind. You also need a registered agent with a Texas street address.
Your board then adopts bylaws. Our work is the tax and accounting side, so for bylaws and legal questions about structure, we suggest working with a lawyer. Next comes the EIN. The IRS lets you apply for an EIN online at no cost, and with it you can open a bank account in the group’s name. After that we help with the 501(c)(3) application, the Texas Comptroller exemption and, if you will have staff, payroll accounts with the IRS and the Texas Workforce Commission.
Start a Nonprofit Cost in Katy
The price depends on where you start. A group that already filed its Form 202 and only needs the IRS and Comptroller steps takes less time than one starting from a name on a napkin. Choosing the full Form 1023 over the short version, or adding payroll accounts, adds work. Filing fees for the Secretary of State and the IRS are separate and go straight to those offices. You hear our fee before anything is filed.
Two Texas Steps New Groups Miss
First, an IRS letter does not make you exempt from Texas taxes. A 501(c)(3) applies separately to the Comptroller on Form AP-204 for franchise and sales tax exemption. Until that is granted, a Texas nonprofit corporation is expected to file franchise tax reports like any other entity. Second, property tax is its own track. If your group ever owns a building, the exemption request goes to the appraisal district in that county, and around Katy that could be Fort Bend, Harris or Waller.
Why Choose Us to Start a Nonprofit
We have prepared taxes since 1993, and nonprofit work is one of the things our office is known for. Plenty of formation services are gone once the state approves your certificate. Our office sticks around: payroll, books and the yearly 990 can all stay with us for years after launch. You can meet us near the Grand Parkway on Kingsland Boulevard or do it all online.
Once you are up and running, see our accounting for new Fort Bend nonprofits.
Common Questions
How many board members do we need to start?
The Texas Certificate of Formation for a nonprofit corporation calls for at least three directors, and they have to be people, not companies. Many groups start with three to five members who each bring a different skill.
We formed years ago but never finished the rest. Can you help?
Yes. We start where you stopped, check that your formation papers are still in good standing with the state, and pick up the IRS application, the Comptroller exemption and any filings that were missed.