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May 15, 2025.
How to Start a Nonprofit in Texas:
Registration, Compliance, and Reporting Requirements
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 Texas, 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 focusing on the Texas state-specific filings, every nonprofit must complete a few foundational steps. These ensure your organization is legally recognized, properly structured, and positioned to apply 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 “Company.” Checking availability through the Secretary of State helps avoid delays in the registration process. Texas SOSDirect 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. Texas 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.
How to register a nonprofit in the state of Texas?
You’ll need to take the formal steps that establish your nonprofit as a recognized entity in Texas:
File Certificate of Formation with the Texas Secretary of State
To legally incorporate your organization in Texas, you must file the Certificate of Formation with the Secretary of State. In Texas, Form 202 serves as the official document for incorporating a not-for-profit organization. The form includes essential details such as the organization’s name, registered agent, purpose, names of incorporators and directors, membership structure, and a dissolution clause—an important requirement for obtaining 501(c)(3) tax-exempt status.
There is no specific deadline; however, the form should be filed before commencing legal operations or applying for tax exemption.
Filing Methods
- Online: Submit via the Texas Secretary of State's online portal.
- Mail: Send the completed form to the Secretary of State's office.
Secretary of State
P.O. Box 13697
Austin, TX 78711-3697
| Form | Due date | Fee | Filing Method |
|---|---|---|---|
|
Form 202 (Certificate of Formation – Nonprofit Corporation) |
No specific due date, file before starting the organization |
$25 |
Online or Mail |
Apply for an Employer Identification Number (EIN) for Your Organization
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 a tax exemption in Texas?
Meeting both exemption and solicitation requirements ensures your nonprofit can operate legally while also building trust with donors and the public. With these approvals in place, your organization is ready to focus on its activities.
Federal tax exemption
To obtain federal state-exempt status, you must submit an application to the IRS. Organizations seeking tax exemption from the IRS must use one of the following forms.
- 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
To qualify for a state tax exemption in Texas, your nonprofit must apply using Form AP‑204 with the Texas Comptroller of Public Accounts. Generally, IRS 501(c)(3) approval is required before submitting this state application.
Filing Methods
- Email: [email protected]
- Fax: (512) 475-5862
- Mail: Send the completed form along with the supporting documents to Texas Comptroller of Public Accounts
Texas Comptroller of Public Accounts
Exempt Organizations Section
P.O. Box 13528
Austin, Texas 78711
| Form | Fee | Filing Method |
|---|---|---|
|
Form AP‑204 (Texas Application for Exemption – Federal and All Others) |
Fees vary based on the tax accounts required |
|
Charitable Organization Registration
Texas does not have a general charitable solicitation registration requirement like California or New York.
However:
- Charitable raffles or bingo operations must register with the Texas Lottery Commission.
- Professional fundraisers are required to register with the Texas Secretary of State.
What are the annual tax filing requirements for nonprofits in Texas?
Nonprofits in Texas 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.
Texas State Tax Filing
-
Texas Franchise Tax Report with the Comptroller of Public Accounts
- All registered charitable organizations are required to file the Texas Franchise Tax Report annually.
- Due Date: Generally, the report is due May 15 each year.
-
Filing Methods
- Online: Register via the Texas State Portal
- Mail: Send the completed form along with the supporting documents to Texas Comptroller of Public Accounts
Secretary of State,
P.O. Box 13697, Austin,
TX 78711-3697
Ready to e-file the 990 Form with the IRS?
File with confidence–you are backed by the Tax990 Commitment.
Frequently Asked Questions
How long does it take to form a nonprofit in Texas?
Processing generally takes 2–3 weeks for filings submitted by mail. Online submissions are usually faster, often processed within a few days.
Do I need to file with both the IRS and Texas?
Yes. Federal and state filings are separate:
- Apply to the IRS for 501(c)(3) tax-exempt recognition.
- Apply to the Texas Comptroller for state tax exemption (franchise tax and sales tax).
Do I need a registered agent in Texas?
Yes. Every Texas nonprofit must have a registered agent with a physical Texas address to receive legal and state correspondence.
What annual filings are required in Texas?
Federal: File the appropriate IRS Form 990 series (Form 990, 990-EZ, or 990-N, depending on revenue).
State: File the Texas Franchise Tax Report with the Comptroller of Public Accounts. Small nonprofits often qualify as “No Tax Due.”