# How to Start a Nonprofit in California ## How do you start a nonprofit in California? To start a nonprofit in California, you file articles of incorporation for a nonprofit public benefit corporation with the Secretary of State, obtain an EIN, adopt bylaws, apply to the IRS for 501(c)(3) status, and apply to the Franchise Tax Board for state exemption with Form 3500A or 3500. Within 30 days of first receiving any charitable assets, the corporation must also register with the California Attorney General's Registry of Charitable Trusts on Form CT-1 and then renew annually on Form RRF-1. California also requires an initial Statement of Information with the Secretary of State within 90 days of incorporation, and raffles require separate annual registration with the Attorney General. California layers more agencies onto nonprofit formation than any other state: the Secretary of State for incorporation, the IRS and the Franchise Tax Board for tax exemption, and the Attorney General's Registry of Charitable Trusts within 30 days of first receiving assets. Miss the last one and the FTB can suspend your exemption. Here is the sequence that keeps all four agencies satisfied. ## Forming a California Nonprofit Corporation Most California charities form as nonprofit public benefit corporations under the California Corporations Code by filing articles of incorporation with the Secretary of State; mutual benefit and religious corporations are separate forms with different rules. California allows a single director, though the IRS preference for an independent board makes three or more the practical standard. The distinctive California step is the Attorney General: charitable corporations register with the Registry of Charitable Trusts on Form CT-1 within 30 days of first receiving charitable assets, then file the RRF-1 renewal every year. State tax exemption is its own application with the Franchise Tax Board, either Form 3500 or the shorter Form 3500A once you hold an IRS determination letter. ## California Formation Steps in Order The full national sequence lives in our pillar guide at /how-to-start-a-nonprofit. California adds four state-specific filings on top: the Statement of Information, the FTB exemption, the Attorney General registration, and the annual RRF-1. ## Living With Attorney General Oversight The Registry of Charitable Trusts is the filing California founders most often miss, and the consequences compound: a delinquent registrant cannot legally solicit, the Franchise Tax Board can revoke state exemption on the Attorney General's referral, and back RRF-1 filings pile up with late fees. The annual RRF-1 travels with your IRS Form 990, and organizations above statutory revenue thresholds attach audited financial statements under the Nonprofit Integrity Act. Commercial fundraisers and fundraising counsel working California campaigns register separately with the Attorney General, and charitable raffles require their own annual registration and post-event reporting. The California detail page at /charitable-registration-laws/california-charitable-registration-laws tracks the current requirements. ## The Rest of the California Stack California nonprofits keep a registered agent on file with the Secretary of State, and out-of-state charities that solicit or operate in California typically register with the Attorney General and may need to qualify as foreign corporations; our registered agent coverage at /registered-agent-for-nonprofits handles both directions. Employers add payroll registrations, and organizations with paid solicitors inherit the bond requirements those contractors carry. Because Cornerstone houses charitable registration, registered agent, surety, and insurance in one practice at /nonprofit-licensing, the whole California calendar, CT-1, RRF-1, Statement of Information, and 990, runs on one system. ## How to get licensed 1. **Good Standing Assessment**, We analyze your business model and, in coordination with our attorney partners, help identify which licenses may apply in every state where you want to operate. 2. **Application Preparation**, We prepare all applications, gather required documentation, and coordinate background checks, financial statements, and surety bonds. 3. **Filing & Follow-Up**, We submit applications to each state and actively follow up with regulators to keep the process moving. 4. **Ongoing Filings**, After licensing, we manage your renewals, regulatory filings, and filing calendar so you never miss a deadline. ## Frequently asked questions ### How many directors does a California nonprofit need? California law allows a nonprofit corporation to have a single director, the most permissive rule among large states. In practice most organizations seat at least three, because the IRS weighs board independence in reviewing 501(c)(3) applications and California limits the fraction of interested (compensated) directors on a public benefit corporation's board to 49 percent. ### When do I register with the California Attorney General? Within 30 days of the corporation first receiving any charitable assets, including its first donation, using Form CT-1 with the Registry of Charitable Trusts. Registration then renews annually on Form RRF-1, generally due with your IRS Form 990 timing, with fees tiered to revenue. ### Does IRS approval exempt me from California taxes? Not automatically. California requires its own exemption from the Franchise Tax Board: Form 3500A is a short filing available once you hold a federal determination letter, and the full Form 3500 is available to organizations applying without one. Until the FTB acts, the corporation is subject to the state's minimum franchise tax. ### Can a California nonprofit run a raffle? Yes, if it qualifies and registers first. Eligible organizations register annually with the Attorney General's raffle program before selling tickets, at least 90 percent of gross receipts must go to charitable purposes in California, and a report is filed after the raffle. Online raffle ticket sales are heavily restricted. --- ## How to cite this page Cite as: "How to Start a Nonprofit in California." Cornerstone Licensing. https://cornerstonelicensing.com/start-a-nonprofit-in-california Published by Cornerstone Licensing. 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