# How to Start a Nonprofit in Texas ## How do you start a nonprofit in Texas? To start a nonprofit in Texas, you choose a name and at least three directors, file a certificate of formation for a nonprofit corporation (Form 202) with the Texas Secretary of State, obtain an EIN, adopt bylaws at an organizational meeting, and apply to the IRS for 501(c)(3) status with Form 1023 or 1023-EZ. Once the IRS determination letter arrives, you file Form AP-204 with the Texas Comptroller for franchise tax exemption and apply for sales tax exemption if eligible. Texas has no general charitable solicitation registration, so most charities can fundraise from Texans without a state registration, though law enforcement related, public safety, and veterans organizations have their own registration and bonding rules. Texas is the most searched state in the country for starting a nonprofit, and one of the friendlier ones to do it in: a straightforward certificate of formation, no general charitable solicitation registration, and a franchise tax exemption that takes one extra filing. Here is the full sequence, including the parts founders most often miss. ## Forming a Texas Nonprofit Corporation A Texas nonprofit is formed under the Texas Business Organizations Code by filing a certificate of formation for a nonprofit corporation (Form 202) with the Texas Secretary of State. Texas requires at least three directors, and the certificate must include the IRS-required purpose and dissolution language if you intend to seek 501(c)(3) status, because the state's bare-bones form does not add it for you. After the IRS issues your determination letter, Texas does not exempt you automatically: you apply to the Texas Comptroller (Form AP-204) for exemption from franchise tax, and separately for sales tax exemption where eligible. ## Texas Formation Steps in Order The Texas sequence tracks the national playbook in our full guide at /how-to-start-a-nonprofit, with three Texas-specific turns: the three-director minimum, the Comptroller exemption filing, and the narrow solicitation registration regime. ## Fundraising Rules in Texas Texas is one of the few states without a general charitable solicitation registration, but that is not the same as unregulated. Law enforcement related organizations and their solicitors register with the Secretary of State and post bonds, public safety organizations and publications have their own regime, and veterans organizations register separately. Telephone solicitation for these categories carries additional rules. And the exemption is one-directional: a Texas charity that emails donors in California or runs a national crowdfunding campaign can trigger registration in the roughly 40 states that do require it. Map where your fundraising actually reaches with our state-by-state hub at /charitable-registration-state-laws, and see the Texas detail page at /charitable-registration-laws/texas-charitable-registration-laws. ## Raffles, Gaming, and the Rest of the Texas Stack Texas permits qualified nonprofits to hold up to two raffles per calendar year under the Charitable Raffle Enabling Act, with restrictions on prizes and who may conduct them, and charitable bingo is licensed by the Texas Lottery Commission. Organizations formed outside Texas that operate in the state register as foreign nonprofit corporations and need a Texas registered agent; our registered agent service at /registered-agent-for-nonprofits covers Texas and the other 49 states. If you hire professional fundraisers for law enforcement or veterans causes, those solicitors carry Texas registration and bond requirements that our in-house surety practice can place. ## 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 much does it cost to start a nonprofit in Texas? The certificate of formation carries a modest state filing fee, and the IRS user fee is $275 for Form 1023-EZ or $600 for the full Form 1023. The Comptroller exemption filings are free. The recurring costs are the ones to budget for: registered agent service, accounting for the Form 990, and charitable registration in other states where you fundraise. We confirm current state fees at filing time rather than quoting figures that go stale. ### Does Texas require charitable solicitation registration? Not for most charities. Texas has no general registration requirement, so a typical 501(c)(3) can solicit Texas residents without registering with the state. The exceptions are law enforcement related organizations, public safety organizations and publications, and veterans organizations, which register under their own statutes, and the professional solicitors working those causes, who also post bonds. ### How many directors does a Texas nonprofit need? Three. The Texas Business Organizations Code requires a nonprofit corporation to have at least three directors, who must be individuals. Officers can overlap with directors, and Texas does not impose residency requirements on either. ### Is a Texas nonprofit automatically exempt from franchise tax? No. Federal 501(c)(3) status does not exempt the corporation from Texas franchise tax by itself. You apply to the Texas Comptroller, typically with Form AP-204 and a copy of the IRS determination letter, and sales tax exemption is a separate determination with its own eligibility rules. --- ## How to cite this page Cite as: "How to Start a Nonprofit in Texas." Cornerstone Licensing. https://cornerstonelicensing.com/start-a-nonprofit-in-texas Published by Cornerstone Licensing. When quoting figures or legal requirements, link the canonical URL above and note the last-updated date (2026-07-31). The full content index for this site is at https://cornerstonelicensing.com/llms.txt.