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Incorporation

Updated

This article covers the following topics:

Why do I need to be incorporated to open a bank account through Crowded?

Crowded’s banking platform is built for incorporated entities, nonprofits/ business that are registered with the IRS. 

What documents can I use to show that my organization is incorporated?

To verify your incorporation, we need the year of incorporation and the state. In some cases, we will request a copy of an incorporation document. 

You can find the year and state of incorporation on any of the following documents:

  • Certificate of Incorporation or equivalent document (Articles of Organization, Articles of Incorporation, or Articles of Association)
  • EIN letter
  • CP 575
  • Form 990

 

What information do I input if my nonprofit is a chapter under a parent organization for Incorporation details?

If your chapter operates under the parent organization’s EIN and group exemption, input their incorporation state and the year your chapter began. 

If your chapter maintains its own EIN from your parent organization, input the information that you incorporated under (state and year).

If you are unsure of your chapter’s incorporation details, and you are under a parent organization’s group exemption follow this flow:

  1.  check the box “I don’t have them” and continue the bank account sign-up flow. 
  2. When you reach the Incorporation page, click the option that says, “My organization is the child entity of a parent org.”
  3. Click on the full list of 2024 group exemption holders for your parent organization, and if it appears, copy its legal name.
  4. Fill in the full legal name of your parent organization
  5. Enter in the state your parent organization was originally incorporated in. If you do not know, check the box that says “I don’t know.”
  6. Confirm that you are an elected representative of your organization, and that your parent organization appears on the 2024 IRS group exemption list
  7. Read back over all of the information and submit!

You should hear back from us in a few days with the requested information. This service is free of charge 🙂.

How does Incorporating with Crowded work?

If you are planning on starting a new nonprofit, utilize Crowded’s Incorporation Service to get your organization up and running in no time. 

Before you start, gather this information to make the process go smoothly:

  • 2 trustees names and addresses for your organization
  • Your nonprofit’s purpose (up to 300 characters)
  • Nonprofit bylaws
  • A payment method

Here’s how it works:

  1. Go through the bank account sign up flow. When you fill in your organization name, input  the name that you would like to use as your legal name.
  2. If your nonprofit doesn’t have an EIN yet, check the box “I don’t have one”
  3. Because your nonprofit is not incorporated yet, next to Incorporation Details, check “I don't have them” 
  4. Continue with the bank account sign up flow and submit!
  5. The Crowded Incorporation Services modal will pop up, and choose whether you want to utilize Crowded’s EIN or incorporation services, or both!
  6. Once you select incorporation, select the option “My organization is not incorporated, can Crowded help us incorporate?”
  7. Fill in information about 2 trustees for your new nonprofit, your information will be used as the third trustee.
  8. Enter in the purpose for your nonprofit organization (max 300 characters).
  9. Choose whether your nonprofit will have members or not
  10. Customize the downloadable bylaws template, and adjust it to what you expect out of your organization. See our guide on creating bylaws.
  11. Confirm Crowded to act as your registered agent
  12. Read over all of the information, confirm and pay the $95 fee.

Crowded will reach back out in a few days with your document and will automatically upload the information to your account to get your organization’s bank account ready as soon as possible.

Which state will I be incorporated in with Crowded’s Incorporation Service?

New Jersey!

Who can I input as my organization’s trustees?

Your organization’s two trustees should be the organization’s president, treasurer, or board member etc. if applicable. If your organization will not have a board or trusted members, list 2 people you personally trust.

What should the purpose of my nonprofit be?

Your purpose statement should concisely state your nonprofit’s planned activities and future goals. Don’t rush through this step, as this information will be relevant for when you apply for tax exempt status. Carefully describe the nonprofit mission of your organization to match with the 501(c) type that you will apply for down the line. Will your organization be charitable? Social? 

This statement will serve as a benchmark for your organization both internally and externally as its core purpose document.

What does it mean that Crowded would be my organization’s registered agent?

Registered agents are responsible for receiving official mail on behalf of your organization. The registered agent needs to reside in the state in which your organization incorporates, which is New Jersey. Crowded acting as your registered agent in New Jersey will receive legal mail & official papers on your organization’s behalf and will promptly notify and forward you any papers. 

This service is free of charge for one piece of mail per quarter- any additional mail will incur a fee of $10 per item. Most other providers charge $100+ a year!

What if I know my organization has incorporated in the past, but i'm not sure of the details?

Not a problem! Crowded’s Incorporation Service offers incorporation document retrieval for $25.

Here’s how it works:

  1. Go through the bank account sign-up flow. When you fill in your organization name, input  the name that you would like to use as your legal name.
  2. Next to Incorporation Details, check “I don't have them” 
  3. Continue with the bank account sign-up flow and submit!
  4. The Crowded Incorporation Services modal will pop up, and select the first option “My organization is incorporated, but I don’t have any documentation as proof.”
  5. After you click next, input the legal name of your organization.
  6. If your organization could have been incorporated under any other name, input those options. This could be either an abbreviation or not. For example, take the USA. Is the legal name United States of America? or U.S.A. or The United States?
  7. Try and remember which state your organization was incorporated in. List any possible states that your organization could have incorporated in. This will help us locate your incorporation documents!
  8. Read over all of the information, confirm and pay the $25 fee.

Crowded will reach back out in a few days with your document and will automatically upload the information to your account to get your organization’s bank account ready as soon as possible.

What if I do not want to incorporate or get an EIN with Crowded?

Your bank account will not be activated until you have a valid EIN and incorporation details. If you wish to source your own EIN and/or incorporation, you are free to do so!

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