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Start a Texas Nonprofit or Tax-Exempt Organization with Confidence

Not every nonprofit is a 501(c)(3). The right tax-exempt classification depends on your organization’s purpose, activities, membership, funding, and advocacy goals. We help Texas organizations choose the right structure and navigate formation and federal tax-exempt status.

  • 20+ Years of Legal Experience
  • 100+ Organizations Served
  • Dedicated Nonprofit & Tax-Exempt Organizations Team
  • Flat-Fee, Transparent Pricing

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WHERE WE WORK

TEXAS

NONPROFIT ORGANIZATIONS SERVED

100+

TYPICAL PRICING

$3,500-$5,000

NONPROFIT FORMATION

Which Type of Tax-Exempt Organization Is Right For You?

Choosing the right tax-exempt classification is one of the most important decisions to make before you start a nonprofit or tax-exempt organization in Texas. We help you evaluate your plans and identify which tax-exempt classification best fits what you actually intend to do.

501(c)(3): Charitable, Religious & Educational Organizations

Common for charities, ministries, educational organizations, scholarship programs, public charities, and private foundations.

501(c)(4): Social Welfare & Civic Organizations

Common for organizations focused on social welfare, civic interests, community advocacy, and certain public policy activities.

501(c)(5): Labor, Agricultural & Horticultural Organizations

Common for qualifying labor unions and organizations focused on agricultural or horticultural interests.

501(c)(6): Business Leagues & Trade Associations

Common for trade associations, professional associations, chambers of commerce, and organizations promoting common business interests.

501(c)(7): Social & Recreational Clubs

Common for organizations organized for pleasure, recreation, social activities, hobbies, sports, and similar member-focused purposes.

Other Tax-Exempt Classifications

Other tax-exempt classifications may apply to specialized organizations, including certain fraternal, employee benefit, mutual benefit, veterans, and political organizations.

Not Sure Which Classification to Use to Start a Nonprofit in Texas?

You don’t need to know your 501(c) category before reaching out. We’ll evaluate your organization’s purpose, activities, funding, and goals to identify the structure that fits.

GET STARTED

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THE PROCESS

How To Start a Nonprofit or Tax-Exempt Organization in Texas

Starting a nonprofit or tax-exempt organization requires more than filing a form with the state. The organization’s purpose, governing documents, operations, funding, membership, and planned activities must work together with the tax classification being sought. Our team guides clients through the process from initial planning through formation and the federal tax-exemption process.

1. Determine the Right Tax-Exempt Classification

Before forming your organization, we look at what you’re actually trying to accomplish: your activities, beneficiaries, membership, funding, and any lobbying or political plans. This helps us identify the structure that fits, which reduces the risk of one of the costlier nonprofit mistakes: forming the wrong type of organization and having to fix it later.

2. Form the Organization in Texas

We prepare and file your Certificate of Formation with the Texas Secretary of State, drafted with your anticipated tax classification in mind. Generic templates often miss provisions your exemption requires. We’ll also advise if a different structure makes more sense.

3. Establish the Organization’s Governance

Strong governance starts at formation. We draft customized Bylaws and Minutes and provide other foundational governance documents in draft form, such as a promissory note, conflict of interest policy, confidentiality agreement, volunteer liability waiver, and more, to help establish your organization. As your organization grows, we can also assist with drafting additional policies, agreements, resolutions, and other governance documents tailored to your specific needs.

4. Obtain an EIN

Once your organization is legally formed, we help you obtain an EIN, which you’ll need for banking, tax filings, payroll, and your federal tax-exemption application.

5. Apply for Federal Tax-Exempt Status

The right IRS filing depends on your exemption: Form 1023 or 1023-EZ for many 501(c)(3)s, Form 8976 and Form 1024-A for many 501(c)(4)s, and Form 1024 for many 501(c)(5), (6), and (7) organizations. We prepare the application, describe your activities, and respond to IRS questions along the way.

6. Address Texas Tax and Regulatory Requirements

Federal and Texas tax exemption are separate. Depending on your classification, you may need additional filings with the Texas Comptroller or other agencies. Texas doesn’t require most nonprofits to register before soliciting donations, but exceptions apply. We help you sort out what actually applies to you.

7. Build a Framework for Long-Term Compliance

Getting tax-exempt status is the beginning, not the end. Staying in good standing means keeping up with annual filings, including federal Form 990 and any Texas franchise tax exemption or periodic report requirements, along with ongoing governance, compensation, and lobbying considerations as your organization grows. We recommend working with a nonprofit accountant for bookkeeping and filings, and we’re happy to provide continued support as questions come up after formation.

Ready to Get Started With Step One?

We’ll walk through your goals and activities to make sure step one is right before you file anything. 

GET STARTED

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Why Clients Trust McCormick Law

See what clients have to say about working with our experienced nonprofit team.
5-star client review

Kelley

5-Star Google Review
As the founder of the Appalachian Memory & Aging Initiative, I had generated the idea for this non-profit months ago, and although I had sought other assistance in getting this entity established, it seemed I never came across exactly what I needed until I was referred to McCormick Law & Consulting. Working with Kati Johnson and John McCormick has been an absolute pleasure. From my first conversation with Kati, I knew that the work would be done promptly and with excellence. Both Kati and John were so kind and accommodating in response to my many questions. I highly recommend their services!
5-star client review

Bobby

5-Star Google Review
We solicited the help of McCormick Law & Consulting for guidance and assistance to properly set up our non profit. We have multiple businesses and always seek subject matter expertise when we expand into an area that we do not have familiarity. The non-profit space was just that, a new area that we needed guidance to explore. McCormick Law was excited about taking on the task and guided us through the process from initial consultation, brain storming, filing and follow up to forms and processes, etc. Our Non Profit, Invictus Impact Foundation is now up and running withing the general timeframe of acceptance by the IRS! I would recommend McCormick Law without a doubt. Ask for Kati! Kati was just as excited if not moreso than we were to gain approval!
5-star client review

Pastor Rochelle

5-Star Google Review
The Law Firm provided excellent, professional and efficient services for a complex process. They were very easy to work with, and the process was effectively streamlined. I would highly recommend their services.
5-star client review

Hunter

5-Star Google Review
I am very pleased with the service provided by McCormick Law and Kati Johnson. These professionals are very thorough and experienced in helping people establish non-profits. We are truly grateful for their efforts and expertise.
5-star client review

Leigh

5-Star Google Review
We used McCormick Law and Consulting for our nonprofit’s 501c3. Emma was amazing, she took time and care in explaining the steps and listing to the work we do. She was thorough when we submitted our application to the IRS and we received our 501c3! Emma was a pleasure to work with and I cannot recommend this firm enough!
5-star client review

Catherine

5-Star Google Review
Kati was so helpful, patient, and kind during the entire process. She submitted our 1023 in less than two weeks from the time we hired McCormick Law & Consulting and we got our approval in record time. If you are responsive to her requests for information she can help you get things done. She is very professional and hard working.

    Who You’ll Be Working With

    Our attorneys and nonprofit professionals combine legal knowledge with hands-on nonprofit experience to guide your organization from formation through long-term success.
    John McCormick, attorney helping clients start a nonprofit in Texas

    John McCormick

    Attorney & Founder

    John McCormick is an attorney, entrepreneur, and community leader dedicated to helping organizations build strong foundations for long-term success. As the founder of McCormick Law & Consulting, he works closely with nonprofit organizations, business owners, and community leaders to navigate legal challenges, strengthen governance, and pursue strategic growth.

    John’s commitment to service extends well beyond his legal practice. He previously served as Chairman of the Board of the Roc Solid Foundation, a nationally recognized nonprofit dedicated to building hope for families fighting pediatric cancer. During his tenure, he helped guide the organization’s continued growth and expansion of its mission-driven impact.
    Read More about John

    Frequently Asked Questions

    Is every nonprofit a 501(c)(3)?
    No. A nonprofit is an organization structured under applicable state law for a nonprofit purpose. Federal tax-exempt status is a separate issue. Although 501(c)(3) is the most familiar tax-exempt classification, the Internal Revenue Code recognizes numerous other categories for organizations such as social-welfare groups, business leagues, trade associations, social clubs, fraternal organizations, veterans’ organizations, cemetery organizations, and others.
    Do I need a nonprofit corporation or an LLC?
    Most organizations seeking federal tax exemption use nonprofit corporations, but the appropriate structure depends on the circumstances. Texas also recognizes unincorporated nonprofit associations, and other structures may be appropriate in specialized situations. We help determine the structure before filing formation documents.
    Can a nonprofit pay its founder in Texas?
    Potentially, yes. Tax-exempt status generally does not mean everyone must work for free. Compensation should be permitted under the applicable exemption, reasonable, properly authorized, and appropriately documented. Private benefit, private inurement, and excess-benefit rules can create serious problems, so compensation arrangements should be structured carefully.
    Does Texas require registration before fundraising?
    Unlike many states, Texas does not impose a general charitable-solicitation registration requirement on most charities and nonprofit organizations. However, special rules apply to certain organizations, including certain law-enforcement, public-safety, and veterans organizations. Organizations soliciting outside Texas should also consider the charitable-registration requirements of other states in which they solicit.
    How many board members do I need in Texas?
    A Texas nonprofit corporation governed by a board of directors generally must have at least three directors. Beyond the statutory minimum, the composition and independence of the board should also be considered in light of the organization’s anticipated tax classification and activities.
    Can I form the organization myself in Texas?
    Yes. The more important question is whether the organization is being structured correctly — errors involving classification, purpose, governance, membership, compensation, fundraising, advocacy, or planned activities can be much harder to correct after the organization is already operating. Our role is to help establish the right structure at the beginning.
    How long does it take?
    Timing depends on the type of exemption, the IRS form required, the organization’s complexity, and current IRS processing times. Some applications resolve relatively quickly; more complex applications may take several months.