How To Start a Nonprofit Organization in Washington in 12 Steps

Washington Entity Types

• Nonprofit Corporation (most common): The standard legal entity for charitable, educational, or religious organizations, providing limited liability protection; file Articles ($30-$80 fee). Best for 501(c)(3) path.
• Public Benefit Corporation: A type of nonprofit corporation designed to serve public interests, commonly used when pursuing 501(c)(3) tax-exempt status.
• Nonprofit Mutual Corporation: Designed to provide services or benefits directly to its members rather than the general public.

Common 501(c) Tax Statuses

Washington Naming Rules

• Name Search: Use the Washington Secretary of State Corporations Search to check availability.
• Suffix: Not required. May use "club," "league," "association," "services," "committee," "fund," "society," "foundation," "guild," "a nonprofit corporation," or similar.
• Prohibited: Cannot end with "incorporated," "company," "corporation," "limited," or abbreviations (except pre-1969 nonprofits).

What to Avoid

Names that are deceptively similar to existing entities or that use "public benefit" unless designated. Reserve your name for 180 days ($30 fee) if not filing Articles immediately.

Directors form your governing body, providing oversight and fiduciary duties (care, loyalty, obedience) to protect the mission.

Key Steps

• Recruit: 3+ diverse directors aligned with the mission (e.g., finance, legal expertise).
• First Meeting (post-Articles): Adopt bylaws and conflict of interest policy, elect officers, and approve EIN/bank account.
• Document: Record minutes for IRS Form 1023; bylaws cover structure, elections, conflicts, and indemnification.

Well-written bylaws help prevent disputes, guide decision-making, and show the IRS that your nonprofit is organized responsibly.

Washington requires every nonprofit corporation to appoint a registered agent with a physical address in Washington in its Articles of Incorporation.

This is the official contact point for receiving legal notices and state correspondence on behalf of your organization.

What The Registered Agent Is Used For

• Legal notice and service of process
• State filing reminders
• Official government correspondence

Key Requirements

The agent must be a Washington resident (individual 18+ years old) or a Washington-authorized entity with a physical street address in Washington—no P.O. boxes allowed.

They must be available during normal business hours to receive documents reliably and forward them promptly.

Consent is required via signature on the Articles of Incorporation (NP 24.03A).

Your Options

1. Use Your Own Registered Agent

Appoint a director, officer, or Washington resident using their physical address, but note that it becomes public record.

2. Hire a Professional Registered Agent Service

Services provide privacy, compliance tracking, and reliability for an annual fee ($100–$300).

What You Must Submit

File Articles of Incorporation (Form NP 24.03A) online or by mail. This establishes your organization as a legal entity and is required before an IRS 501(c)(3) tax-exempt application.

Submit online via CCFS, mail, or in person. Receive UBI upon approval; effective immediately or up to 90 days delayed. Tip: Include IRS-compliant clauses from the start to avoid amendments.

After You Get Your EIN

Your EIN can typically be used immediately for bank accounts, IRS Form 1023, and WA State tax registration. Save/print the confirmation notice immediately (online session ends after issuance).

Common 501(c) Paths (High Level)

• 501(c)(3): Charitable, educational, religious, and similar nonprofits
  Filed using: Form 1023 or Form 1023-EZ
• 501(c)(4): Social welfare organizations
  Filed using: Form 1024-A
• Other 501(c) types: Trade associations, social clubs, and other specialized nonprofits
  Filed using: Form 1024

Key Points

• Form 1023-EZ: shorter application for eligible small nonprofits; complete the Eligibility Worksheet first.
• Form 1023: Full application required for larger/complex organizations or if ineligible for EZ.

What You Will Typically Prepare

Before submitting, you'll need:

• Organizing documents (filed Washington Articles of Incorporation)
• Governance documents (bylaws, conflict-of-interest policy)
• Financial narrative and budgets/projections
• EIN from Step 8

Determination Letter

After IRS approval (1023-EZ: <1 month; 1023: 3-6 months), receive a determination letter confirming tax-exempt status—essential for grants, donations, and WA state tax benefits.

Maintain Federal Compliance

Most tax-exempt nonprofits must also file an annual Form 990 with the IRS to report activities and maintain federal tax-exempt status.

File Your Washington Annual Report

Washington nonprofits must submit an Annual Report to the Secretary of State via CCFS.

Additional Washington Compliance

• Department of Revenue (DOR): Register if gross income >$12,000/year for sales/use tax, business license
• Charitable Solicitation Registration: Required before fundraising (unless exempt) via Secretary of State
• IRS Form 990: File annually based on gross receipts to maintain 501(c)(3) status

Staying current with all filings protects your tax-exempt status, builds donor trust, and strengthens your organization's reputation.

Business & Occupation (B&O) Tax

Nonprofits pay B&O tax on gross revenues from regular business activities (e.g., program fees). Limited exemptions apply to fundraising events, donations, and certain organizations (e.g., youth-serving, religious). No separate application—automatic with IRS 501(c)(3) status, but register with the Department of Revenue if gross income is >$12,000/year.

Sales Tax Exemption

Washington does NOT grant nonprofits exemption from state sales tax. Nonprofits must:

• Pay sales tax on purchases (supplies, equipment, lodging)
• Collect/remit sales tax on taxable sales
• Limited exemptions: Certain fundraising sales (≤$6,000/location/year) or specific nonprofit types (e.g., homeless services).

What You Must Submit

• IRS 501(c)(3) Determination Letter
• Articles of Incorporation
• Bylaws
• Recent financials/Form 990 (if applicable)

Key Notes

• Register with the WA Dept. of Revenue via Business License Application
• No sales tax exemption certificate issued
• Compliance maintains federal status and fundraising eligibility
• Review the Nonprofit Organizations Guide for specifics

Exempt Organizations

• Raises <$50,000 AND all work is done by unpaid volunteers
• Churches and integrated auxiliaries
• Political organizations
• Appeals for specific individuals (all funds go directly to them)

What To Submit

• IRS 501(c)(3) Determination Letter
• Articles of Incorporation + Bylaws
• Most recent IRS Form 990 (or financial statements if no 990)
• UBI number
• Disclosure of legal actions (past 10 years, if any)

Charitable Trusts (separate): File initial registration within 4 months of creation ($25 fee).