Arizona Nonprofit Formation & 501(c)(3) Lawyers

The Mistake That Costs Nonprofit Founders Months

Most people who form their own Arizona nonprofit download the free fill-in-the-blank Articles of Incorporation from the Arizona Corporation Commission, pay the filing fee, and assume they're done. They aren't.

The Internal Revenue Service requires that certain language be in the Articles of Incorporation before it will grant tax exempt status. The form provided by the Arizona Corporation Commission complies only with the minimal requirements of Arizona law and does not include any IRS language. If you intend to apply for tax exempt status after the corporation is formed, you should determine what language is required by the IRS and prepare your own Articles of Incorporation. It is advisable to seek the advice of your tax or legal professional and/or the IRS (www.irs.gov) before you form your corporation.

We draft every document so your corporation qualifies under Internal Revenue Code §501(c)(3) from day one.

What You Get for Our $1,297 Flat Fee

When you hire us to form your Arizona nonprofit corporation, we provide 28 services, including:

• Unlimited phone consultations with Richard Keyt and Richard C. Keyt about forming and operating your nonprofit, including your corporate name, how many directors and officers to have, and whether to have members.
• Custom attorney-drafted Articles of Incorporation with the provisions the IRS requires for a 501(c)(3) charity, filed with the Arizona Corporation Commission on an expedited basis.
• Custom Bylaws written for a tax-exempt charity, as required by A.R.S. §10-3206. Bylaws for a charity are different from bylaws for an ordinary nonprofit.
• Organizational Minutes and Resolutions of the initial board under A.R.S. §10-3205, including a resolution authorizing the corporation to reimburse the founders for the legal fees and costs of forming it.
• Seven IRS-recommended governance policies and the board resolutions adopting them: Conflict of Interest, Whistleblower, Document Retention and Destruction, Gift Acceptance, Travel and Expense Reimbursement, Compensation, and Joint Venture. IRS Form 990 asks every year whether your charity has adopted these policies.
• Federal employer identification number (EIN) so you can open the corporation's bank account.
• Our Arizona Nonprofit Corporation Operations Manual, explaining how to open the bank account, add and remove directors and officers, hold and document board meetings, and stay in compliance.
• 501(c)(3) operating letters covering donor receipt rules, a sample donor substantiation letter, and the excess benefit rules of IRC §4958 that can impose heavy penalties on insiders.
• Nine instructional videos on topics every new 501(c)(3) board needs to understand.
• A corporate minute book containing your approved Articles, Bylaws, Organizational Resolutions and Policies.
• Statutory agent service free for the first year, then $99 per year. You can change statutory agents at any time.

See the complete list of the 28 Arizona nonprofit corporation formation services we provide.

Why Nonprofit Founders Hire KEYTLaw Instead of an Online Filing Service

• You work with licensed attorneys, not document preparers. Richard Keyt holds a master's degree (LL.M.) in tax law from New York University School of Law. Richard C. Keyt is an attorney and former CPA with a master's degree in accountancy from Notre Dame.
• Experience you can count. We have formed 550+ Arizona nonprofit corporations and 10,000+ Arizona LLCs. Rick has practiced law in Arizona since 1979.
• A guaranteed flat fee. You know the price before we start. Calling us with questions doesn't run a meter.
• Fast filing. We file your Articles within one or two business days after you approve your questionnaire and pay the fee.
• Founders anywhere in Arizona. Meet in our Scottsdale office, by phone, or by Zoom video. Your nonprofit can be in Flagstaff, Tucson, Yuma or anywhere else in the state.
• Your money can come back to you. Our organizational resolutions authorize the nonprofit to reimburse you for what you paid to form it.

How to Hire Us in Three Steps

1. Ask your questions (optional). Book a free office, phone or Zoom video consultation or call 480-664-7478. There is no charge and no obligation.
2. Submit our questionnaire. Complete our online Arizona Nonprofit Corporation Incorporation Questionnaire, or give us your information over the phone.
3. Approve and pay. We prepare and file your Articles within one or two business days, obtain your EIN, and deliver your Bylaws, resolutions, policies, operations manual and minute book.

The Next Step: 501(c)(3) Tax Exemption with IRS Form 1023

Forming an Arizona nonprofit corporation does not make it tax-exempt. To become a 501(c)(3) charity the corporation must apply to the IRS, usually on Form 1023. Most of the application is a detailed narrative of your programs plus financial projections, and weak answers lead to IRS follow-up questions, delays and denials.

We prepare and file Form 1023 for a flat fee of $3,500. The IRS charges a separate $600 filing fee. Our service includes Rick's detailed explanation letter, our 50-item Form 1023 checklist, conferences with our team to gather the information the IRS wants, preparation and filing of the application, and handling IRS questions after it is filed.

Smaller organizations may qualify for the shorter Form 1023-EZ. Take our Form 1023-EZ eligibility test or see how to hire us to prepare IRS Form 1023.

Frequently Asked Questions

Is an Arizona nonprofit corporation automatically tax-exempt?

No. Filing Articles of Incorporation creates the corporation under Arizona law. Federal income tax exemption under §501(c)(3), and the ability of donors to deduct their gifts, comes only after the IRS approves the corporation's application.

How long does it take to form an Arizona nonprofit corporation?

We file your Articles of Incorporation within one or two business days after you approve your questionnaire and pay our fee. We always file on an expedited basis so the Arizona Corporation Commission approves the corporation as quickly as possible.

How many directors does an Arizona nonprofit corporation need?

Arizona law requires at least one director under A.R.S. §10-3803. For a corporation that will apply for 501(c)(3) status, we generally recommend at least three directors who are not related to each other. We'll talk through the right board for your organization at no charge.

Can the nonprofit pay me back for the cost of forming it?

Yes. The Organizational Resolutions we prepare authorize the corporation to reimburse its founders for the legal fees and other costs of incorporation.

Can you form the corporation now and prepare Form 1023 later?

Yes. Many founders form the corporation first and apply for exemption once their programs and budget are defined. If the corporation files Form 1023 within 27 months after it is formed, the IRS generally makes the exemption effective back to the date of formation.

Do I have to live in the Phoenix area to hire you?

No. We form nonprofit corporations for founders throughout Arizona. You can meet with us in our Scottsdale office, by phone, or by Zoom video.

What does it cost?

Our flat fee to form an Arizona nonprofit corporation is $1,297. Our flat fee to prepare and file IRS Form 1023 is $3,500, plus the IRS's $600 filing fee.

Free Resources for Nonprofit Founders

• Step-by-Step Guide: How to Form an Arizona Nonprofit Corporation
• Answers to Frequently Asked Questions about 501(c)(3) Charities
• IRS Stay Exempt Virtual Workshop: free IRS training on applying for and keeping tax-exempt status.
• IRS Publication 557, Tax-Exempt Status for Your Organization: the IRS's main guide to getting and keeping exemption.
• IRS Publication 4221-PC, Compliance Guide for 501(c)(3) Public Charities: activities that can put your exemption at risk, such as political campaigning.
• IRS Publication 4221-PF, Compliance Guide for 501(c)(3) Private Foundations: stricter rules for charities funded by one family or company.
• IRS Publication 1771, Charitable Contributions: Substantiation and Disclosure: what your donor receipts must say.
• IRS Publication 526, Charitable Contributions: which gifts donors can deduct.
• IRS Publication 598, Tax on Unrelated Business Income: when a charity owes tax on income outside its mission.
• IRS Publication 1828, Tax Guide for Churches and Religious Organizations