In order to start and operate a nonprofit organization successfully, it’s important that you have a clear understanding of the guidelines and requirements established by the respective state agency.
Here, you can find out how to start and register a nonprofit organization in Minnesota, including obtaining tax-exempt status and the annual filing requirements, due dates, and penalties.
To start a nonprofit in the State of Minnesota, you must follow these registration procedures.
To register your non-profit organization in Minnesota, you are required to file an Article of Incorporation with the state.
In addition to these details, you must pay a filing fee of $90 for expedited service in-person and online, or $70 if filed by mail.
Minnesota law mandates that nonprofit corporations must file a Form C1 (Charitable Organization Initial Registration Form) with the state to conduct operations in Minnesota and pay a registration fee of $25 .
Nonprofits that obtained a federal tax exemption under IRC Section 501(c)(3), or 501(c), can obtain an exemption from the Minnesota sales and use tax by filing Form ST16 (Application for Nonprofit Exempt Status - Sales Tax) with the Minnesota Department of Revenue.
In Minnesota, charitable organizations are generally required to renew annually by submitting an Annual Renewal Form to the Office of the Minnesota
Secretary of State.
Tax-exempt organizations operating in Minnesota that file Federal Form 990-T must file Minnesota's Form M4NP (Unrelated Business Income Tax Return) and pay tax on the Minnesota federal taxable income.
In addition to the Annual renewal, Minnesota law also requires nonprofit organizations to file an Annual Report Form C2 (Charitable Organization Annual Report Form) along with a copy of IRS Form 990 each year with the secretary of state.
The Deadline to file an Annual renewal with the state of Minnesota is December 31st of each year.
The due date to submit an annual report to the state of Minnesota is fifth month after the end of the tax year.
The deadline to file the annual report with the state of Minnesota is on or before the 15th day of the 7th month after the organization's accounting year ends.
If the organization fails to file the Annual Renewal Form by December 31 of this year, the corporation will be dissolved without further notice from the Secretary of State.
If you file after the extended due date and owe tax, you must pay an additional penalty for filing late. The late-filing penalty is 5% of the unpaid tax.
If an organization fails to file its annual report or request an extension by the due date, a $50 late fee is assessed.
Renewal Forms can be filed electronically through the online portal provided by the Minnesota Secretary of State.
You can also mail the completed Forms to the address below:
Minnesota Secretary of State - Business Services,
First National Bank Building,
332 Minnesota Street, Suite N201,
Saint Paul, MN 55101
The completed annual reports must be mailed to [email protected]
