Are we REQUIRED to hire an attorney for this?

Are we REQUIRED to hire an attorney for this?

Several of my colleagues and I are in the process of setting up a non-profit organization [501c3] in New York State, and have no desire to spend more money than absolutely necessary. Several people that one of my fellow Directors asked about the matter insisted that if we didn't hire a lawyer, we could not legally establish our non-profit with the federal or state governments. Is this true, or can we legally do it ourselves without hiring a lawyer at some point?


Forming a 501(c)(3) Without an Attorney

Alaras,

Thank you for your inquiry.  The benefit of using a knowledgeable attorney is that he or she will ensure that you obtain tax-exempt status, help shield you and your co-directors from personal liability, and attend to all of the filing, record-keeping and disclosure requirements. That being said, you are not obligated to use an attorney to form a 501(c)(3) in New York State.

The Citizen Media Law Project's Legal Guide lays out the steps required to form a nonprofit corporation in New York here.  That webpage should be read in conjunction with the general section on forming a nonprofit corporation, which lists additional steps that are applicable to all states. 

You should also familiarize yourself with:

Once you've incorporated as a nonprofit corporation, you can start applying for state and federal tax exemptions.  The necessary forms are at the bottom of this page of the CMLP Legal GuideThis IRS webpage is another great source of useful information for charities and nonprofits, and you can find the IRS's hyperlinked Table of Contents for frequently asked questions about 501(c)(3) organizations here.  

If you decide that you would prefer to have some assistance with the process, consider using an online legal service.  You have doubtless heard of LegalZoom, which offers unlimited customer support, and takes care of both the document filing process and the tax exemption application.

A quick Google search revealed several alternative online legal services that may be worth considering:

Good luck with the process!

 

 

Thank you. Given that

Thank you. Given that information, we most likely will not consult an attorney unless we absolutely must, but we probably will use LegalZoom or another online legal service, as you suggested. Also, given that our organization is based in furthering the role and significance of poetry on Long Island, as well as acting as a bridge between the established Long Island poetry community and up-and-coming generations of Long Island poets, it is fairly unlikely that our activities could lead to a lawsuit, but I will be sure to verify that no individuals can be held personally liable for lawsuits against the organization. Again, thank you for the assistance!

LegalZoom doesn't help with non-profits in NY

I checked LegalZoom out to see if they could provide assistance with setting up a non-profit, as you advised, but when I inputted that we were establishing it in New York, I was directed to a page which said that LegalZoom does not file in NY for non-profits due to the complexity of the profits, instead directing us to use an attorney to file. However, as I previously said, our budget is far too low to hire an attorney in this state (just around $400).

Getting assistance with formation of a non-profit in New York

Since it sounds like your project is related to the arts, you may want to contact the New York chapter of Volunteer Lawyers for the Arts.  They may be able to assist you with locating legal assistance.

There is no obligation

There is no obligation whatsoever to hire an attorney. However, if you do hire one, it usually works to your advantage. You don't need to do the running around to obtain the forms, and you will save considerable time since they know about all the legal compliances and the time to submit them. Additionally, they will consult you with various tax exemptions and other benefits you are liable for a non-profit organization. Go with the advice of good business attorneys. I recommend Minor and Brown.

   
 
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