Startup cost depends on the formation state, the IRS application form, and whether the founder purchases professional support or other services. State incorporation fees vary, while the IRS currently charges $275 for Form 1023-EZ and $600 for Form 1023. Additional expenses may include a registered agent, document preparation, insurance, professional advice, fundraising registration, and operating costs.

Nonprofit corporations are created under state law, and forming one is not automatically free: state filing fees, the IRS exemption-application fee, a registered agent, insurance, banking, software, fundraising, and professional advice are all separate costs. For planning purposes, separate the mandatory government charges from optional service costs and from the budget needed to actually run programs, so incorporation isn't mistaken for the only expense involved.

Exact state requirements can differ, so the current state filing instructions control any state-specific step.

How Beacon Nonprofit can help: Beacon packages the administrative formation work into defined service options, making the service portion easier to understand before filing. BeaconStart covers core state formation work, while BeaconComplete adds the broader setup services. State filing fees and IRS user fees are separate, and Beacon does not provide startup funding or guarantee grants or donations. Beacon's role is administrative formation and filing support: government agencies control approval, processing times, and legal or tax determinations, and specialized operational matters may require a qualified professional outside Beacon's service scope. Depending on the selected package, the Beacon records available to the organization can include the approved state formation documents and, with BeaconComplete, EIN assistance, corporate bylaws, registered agent service, and the 501(c)(3) application materials prepared through the service.