Forming a nonprofit corporation is much like creating a regular corporation, except that nonprofits have to take the extra steps of applying for tax-exempt status with the IRS and their state tax division. Here is what you need to do:

1. First you will choose an available business name that meets the requirements of state law.

2. Next, you file formal paperwork, usually called non-profit articles of incorporation, and pay a small filing fee to the state of registration.

3. You will then apply for your federal and state tax exemptions through the IRS and state of registration.

4. Your corporate bylaw will be created which set out the operating rules for your non-profit corporation.

5. Next, you will appoint the initial directors.

6. You will then conduct the first meeting of the board of directors.

7. Finally, you will file for licenses and permits that may be required for your corporation.
 

A nonprofit corporation is a type of corporation that is organized for a charitable, educational, religious, literary, scientific, or other nonprofit purpose. Unlike for-profit corporations, which are organized to generate profits for their shareholders, nonprofit corporations are organized to pursue a specific social, cultural, or educational mission.

Nonprofit corporations are generally exempt from federal income tax and may also be exempt from state and local taxes. In addition, donations made to nonprofit corporations may be tax-deductible for the donor.

To form a nonprofit corporation, the founders must file articles of incorporation with the state in which they wish to organize the corporation. The articles of incorporation must include specific language that outlines the nonprofit purpose of the corporation, and the corporation must also obtain tax-exempt status from the IRS in order to be eligible for tax benefits.

Nonprofit corporations are governed by a board of directors, which is responsible for making strategic decisions and ensuring that the organization operates in compliance with its mission and the law. Nonprofit corporations may also have members who elect the board of directors and provide input on the organization's activities.

It's important to note that nonprofit corporations are subject to many of the same legal and regulatory requirements as for-profit corporations, including filing annual reports, maintaining records, and complying with state and federal laws.
 

Benefit Corporations are committed to pursuing a "triple bottom line" that includes people, planet and profits. Any business that forms or elects status as a public benefit corporation will be required to identify one or more specific public benefits to be promoted by the corporation in its certificate of incorporation. The legislation defines "public benefit" as "a positive effect (or reduction of negative effects) on one or more categories of persons, entities, communities or interests (other than stockholders in their capacities as stockholders) including, but not limited to, effects of an artistic, charitable, cultural, economic, educational, environmental, literary, medical, religious, scientific or technological nature." In addition to specific public benefits that are identified, the corporation will also be guided by the more general requirement to operate in a responsible and sustainable manner.
 

As of January 1, 2012, there are two new subtypes of stock corporations in California, a flexible purpose corporation and a benefit corporation. The new corporation sub-types allow entrepreneurs and investors to organize stock corporations that can pursue both economic and social objectives. The new stock corporation sub-types differ from traditional for profit corporations that are organized to pursue profit and nonprofit corporations that must be used solely to promote social benefits.
 

The flexible purpose corporate designation requires that corporations include some special purpose, which they consider to be beneficial to society, in their Articles of Incorporation and on their share certificates. That special purpose becomes their paramount priority, in most cases superseding the normal requirement that corporations maximize profits. In this, both structures are fairly similar; they both set out on a mission and help protect the business from being sued if that mission results in smaller profits.