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How to Start a Nonprofit in California: Requirements, State Filings, and Annual Reports
From incorporation to annual filings—your step-by-step guide to staying compliant.
Every state has its own requirements for forming and maintaining a nonprofit. In California, the process includes initial registration, tax-exempt applications, and recurring annual filings. Understanding these steps upfront helps ensure your organization remains compliant and in good standing.
Understanding the Basics
Before filing in California, nonprofits must complete basic foundational steps to secure legal recognition, establish proper structure, and be eligible for tax-exempt status.
Name your organization
Select a name that is distinguishable from other registered entities and follows state naming rules. It must include a corporate designator such as “Corporation,” “Incorporated,” or “Limited.” Checking availability through the Secretary of State helps avoid delays in the registration process. California Business Search
Choose your board of directors
Nonprofits are governed by a board that carries fiduciary responsibility. At minimum, you’ll need one incorporator to file your Articles of Incorporation, three directors to guide oversight, and an officer (often a secretary) to maintain records. California does not require directors or officers to reside in the state.
Define your charitable purpose
Your purpose must align with IRS requirements for tax-exempt status—commonly charitable, educational, religious, or scientific. It must serve the public rather than private individuals or political interests. A clear purpose statement is essential for both incorporation and federal exemption applications.
Appoint a registered agent
A registered agent receives official communications, such as legal notices and government filings, on behalf of your nonprofit. This can be an individual or a business entity, but they must be based in California or authorized to operate there.
How to register a nonprofit in the state of California?
You must complete the formal procedures required to establish your nonprofit as a legally recognized entity in California.
File Articles of Incorporation with the California Secretary of State
To legally incorporate your organization in California, you must file the Articles of Incorporation with the Secretary of State. In California, Form ARTS-PB-501(c)(3) is used to incorporate a nonprofit if you plan to apply for federal 501(c)(3) tax-exempt status. For other types of nonprofits, use Form ARTS-PB-Nonprofit.
There is no specific deadline; however, the form should be filed before commencing legal operations or applying for tax exemption.
Filing Methods
- Online: File through the California Secretary of State’s bizfile Online portal.
- Mail: Send the completed form to the Secretary of State's office.
Secretary of State,
Business Programs Division,
1500 11th Street,
Sacramento, CA 95814
| Form | Due date | Fee | Filing Method |
|---|---|---|---|
|
Form ARTS-PB-501(c)(3) (For IRS 501(c)(3)) |
No specific due date, file before starting the organization |
$30 (online/by mail) + $15 counter fee if filed in person |
Paper filing and e-file options are available. |
|
Form ARTS-PB-Nonprofit (For other sections) |
Apply for an Employer Identification Number (EIN)
Nonprofit organizations are required to obtain an Employer Identification Number (EIN) from the IRS. This will serve as the organization's federal tax identification number and is essential for conducting legal and financial activities.
Although there is no specific deadline to apply, it is recommended to obtain an EIN as early as possible, as it is necessary for opening a bank account, applying for tax-exempt status, and filing required forms with the IRS.
| Form | Fee | Filing Method |
|---|---|---|
|
Form SS-4 (Application for Employer Identification Number (EIN)) |
Free |
Online via IRS EIN Assistant |
Hold your organizational meeting and adopt bylaws
After incorporation, your nonprofit must hold its initial organizational meeting to establish governance and ensure legal compliance. Make sure the following points are addressed during the meeting:
- Approve the bylaws - These outline how your nonprofit will operate (e.g., meetings, voting, officer roles).
- Elect governing bodies - Typically includes President, Secretary, and Treasurer.
- Adopt policies - Such as a conflict-of-interest policy, required for 501(c)(3) status.
- Authorize filings - Approve resolutions to apply for IRS and state tax exemptions.
Note: Document all decisions in meeting minutes, signed by the secretary.
How to apply for tax exemption and solicitation in California?
To operate legally in California, nonprofit organizations must meet both tax exemption and charitable solicitation requirements. Here's a streamlined process for applying for both:
Federal tax exemption
To obtain a state tax exemption, your nonprofit must first apply to the IRS. The required forms depend on the size and type of your organization:
- Form 1023: For Section 501(c)(3) organizations with gross receipts over $50,000 or total assets over $250,000.
- Form 1023-EZ: Also applies to Section 501(c)(3) organizations–typically smaller nonprofits with gross receipts of $50,000 or less and assets under $250,000.
- Form 1024 or 1024-A: Organizations seeking tax-exemption under IRS sections other than 501(c)(3).
| Form | Due date | Fee | Filing Method |
|---|---|---|---|
|
IRS Form 1023 or 1023-EZ (For Section 501(c)(3) organizations) |
Within 27 months of forming the organization. |
Varies from $275 to $600 |
Online via Pay.gov |
|
IRS Form 1024 or 1024-A (For other organizations) |
State tax exemption
Form 3500 (Exemption Application)
To obtain a state income tax exemption in California, file Form 3500 with the Franchise Tax Board (FTB). Filing this form is required for California to recognize your tax-exempt status in addition to the federal IRS approval.
Filing Methods
- Online: Register and file via the California FTB’s online portal.
- Mail: Send the completed form along with the supporting documents to the California Franchise Tax Board (FTB).
Exempt Organizations Unit MS F120
Franchise Tax Board
PO Box 1286
Rancho Cordova, CA 95741-1286
| Form | Fee | Filing Method |
|---|---|---|
|
Form 3500 (Exemption Application) |
Fees vary based on the tax accounts required |
Mail or Online |
Form 3500A (Submission of Exemption Request)
Form 3500A is a shorter filing used if your nonprofit already has an IRS determination letter granting 501(c)(3) status. It allows California to recognize the IRS decision without going through the full Form 3500 process.
Filing Methods
- Online: File through the California FTB’s online portal.
- Mail: Send the completed form and supporting documents to:
Franchise Tax Board
Exemption Unit, MS F120
P.O. Box 1286
Rancho Cordova, CA 95741-1286
| Form | Fee | Filing Method |
|---|---|---|
|
Form 3500 A (Submission of Exemption Request) |
No Fee |
Mail or Online |
Other requirements:
- California Department of Tax and Fee Administration (CDTFA) if your nonprofit sells taxable goods /services.
- Employment Development Department (EDD) if you hire employees.
Charitable organization registration
Before you can solicit donations in California, you must register with the California Attorney General’s Registry of Charitable Trusts via Form CT-1. This ensures your nonprofit complies with California fundraising laws and is trustworthy to potential donors.
Filing Methods
- Online: Submit through the California Attorney General’s Registry of Charitable Trusts portal.
- Mail: Send the completed form and $25 fee (check payable to “Attorney General’s Registry of Charitable Trusts”)
Office of the Attorney General
Registry of Charitable Trusts
P.O. Box 903447
Sacramento, CA 94203-4470
| Form | Due date | Fee | Filing Method |
|---|---|---|---|
|
Form CT-1 (Initial Registration) |
Within 30 days of receiving assets |
$25 |
Online or Mail |
What are the annual tax filing requirements for nonprofits in California?
Nonprofits in California must comply with both federal and state filing requirements to maintain their tax-exempt status and remain in good standing. Here's an overview of the key filing obligations:
Federal tax filing (IRS)
Even though your nonprofit may be exempt from paying federal income taxes under Section 501(c)(3), it still has annual filing requirements with the IRS:
-
Forms: The organization must file 990 series forms annually to stay compliant.
- Form 990-N: For smaller organizations with gross receipts $50,000 or less.
- Form 990-EZ: For organizations with gross receipts under $200,000 and total assets under $500,000.
- Form 990: For organizations with gross receipts ≥ $200,000 and total assets ≥ $500,000.
- Form 990-PF: For private foundations.
- Form 990-T: For organizations with any unrelated business income (UBI) of $1,000 or more.
- Due Date: The return is due on the 15th day of the 5th month after the fiscal year ends (for example, May 15 for a December 31 year-end).
- Filing Method: The IRS mandates e-filing for these forms.
California State Tax Filing
California requires nonprofits to submit annual reports and tax filings to maintain active status and comply with state regulations.
-
Annual Form RRF-1 + IRS Form 990 Copy with the California Attorney General
All registered charitable organizations in California must file Form RRF-1 each year, along with a copy of the federal Form 990 (or 990-EZ/990-N as applicable). This filing ensures financial accountability and keeps the nonprofit’s registration active.
Due date
-
Annually, based on your nonprofit’s fiscal year.
- Online: Submit through the Registry of Charitable Trusts online portal.
- Mail: Send the completed Form RRF-1, required attachments, and fee payment to:
Registry of Charitable Trusts
P.O. Box 903447
Sacramento, CA 94203-4470
-
-
Form 199 or Form 199N with the Franchise Tax Board (FTB)
Required for California state income tax exemption. Nonprofits must file Form 199 (Annual Exempt Organization Return) or Form 199N (e-Postcard), depending on gross receipts.
Due date
- Annually, on or before the 15th day of the 5th month after the close of your fiscal year (generally aligned with the IRS Form 990 due date).
- Online: File through the California FTB website.
- Mail: Send the completed form to the California Department of Revenue
Franchise Tax Board
PO Box 942857
Sacramento, CA 94257-0500 -
SI-100 with the Secretary of State
Nonprofits must file Form SI-100 within 90 days of incorporation and every two years thereafter. It provides details about the organization’s officers, directors, and agent for service of process.
Due date
- Initial Filing: Within 90 days after incorporation.
Biennial Filing:
- Every 2 years, during the applicable filing period based on the month of incorporation.
- Online: Submit via the California Secretary of State’s online portal.
- Mail: Send completed form to:
Statement of Information
P.O. Box 944230
Sacramento, CA 94244–2300
Ready to e-file the 990 Form with the IRS?
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Frequently Asked Questions
How long does it take to form a nonprofit in California?
Forming a nonprofit in California usually takes 2–6 weeks, depending on whether you file online or by mail. Online filings are typically faster, while mail submissions may take longer to process.
Do I need to file with both the IRS and California FTB?
Yes. Federal and state tax exemptions are separate processes. You must apply to the IRS for federal tax-exempt status (e.g., 501(c)(3)) and also to the California Franchise Tax Board (FTB) for state income tax exemption. Approval from one does not automatically grant the other.
Do I need a registered agent in California?
Yes. Every California nonprofit must have a registered agent—a person or business designated to receive official legal and tax documents on behalf of the organization. This ensures the state can contact the nonprofit when necessary.
What is the difference between an IRS tax exemption and a California tax exemption?
- IRS tax exemption: Exempts your nonprofit from federal income tax.
-
California FTB exemption: Exempts your nonprofit from California state income taxes.
You need both if your nonprofit will operate and fundraise in California.
What are the annual state reports for California nonprofits?
California nonprofits have three main annual filing requirements:
- RRF-1: Filed with the Attorney General’s Registry of Charitable Trusts, this report provides information about your organization’s activities, finances, and compliance with charitable trust laws.
- Form 199 or 199N: Filed with the California Franchise Tax Board, this is the state income tax return for nonprofits. Small nonprofits may file the simpler Form 199N (e-Postcard).
- Statement of Information: Filed with the California Secretary of State, this updates the state on your nonprofit’s addresses, officers, and agent for service of process.